Tupperware Brands plans to file bankruptcy (Image/Tupperware.com)
The iconic home goods company, Tupperware Brands, is preparing to file for bankruptcy as early as this week, Bloomberg reported on Monday. The company, known for its plastic food storage containers, has struggled to revive its business despite efforts to restructure in recent times. This follows a years-long effort to rebuild the business amid waning demand.
According to reports, Tupperware has accumulated over $700 million in debt and breached the terms of its loan agreements. Lenders granted the company temporary relief earlier this year, providing enough time to repay. However, its financial situation continues to deteriorate, and the company’s shares plummeted by more than 50% as of 3:53 PM in New York.
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The COVID-19 pandemic resulted in a sales boost on account of confinement at home, cooking more food, and storing leftovers but sales declined when the world resumed normal. As a result, Tupperware announced plans to close its only US factory in June, and the company laid off nearly 150 employees in recent attempts to revive the business. Additionally, the company replaced its CEO, Miguel Fernandez, with Laurie Ann Goldman last year, along with several board members.
The bankruptcy preparations follow protracted negotiations between Tupperware and its lenders. A representative for Tupperware declined to comment on the matter, as per Bloomberg. The company previously expressed doubts about its ability to stay in business, and the bankruptcy plans are not finalised and may change on account of negotiations and further discussions.
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Tupperware was founded in 1946 by Earl Tupper. The company introduced its innovative plastic products with airtight seals. The brand became a household name through sales parties hosted by suburban women. Today, the company relies on over 300,000 independent salespeople worldwide, according to its 2022 sales list.
