Tupperware to file for bankruptcy as financial woes deepen
The legendary American brand producing plastic containers, Tupperware, will file for bankruptcy. The company, which has operated for 82 years, is still grappling with financial difficulties despite loans taken out in August.
Tupperware, founded in 1942 and renowned for its direct sales model via consultants visiting customers, is encountering challenges in an era of expanding e-commerce platforms. Even though Tupperware began transitioning to online sales, its competition is gaining an increasing advantage, the report states.
The rescue operation did not help
In early August 2024, Tupperware believed it could avoid bankruptcy through external financial support. The report explains that memes buoyed the Tupperware rescue operation, and online investors drove up the stock value, viewing it as low-risk with high-profit potential.
At that time, the company was supposed to agree with creditors, reducing interest by about £121 million. Furthermore, it secured roughly £17 million in new financing, extended the repayment period for about £280 million in debt, and reduced its debt by about £44 million.
This did not help the American giant, however. "Bloomberg", citing individuals familiar with the situation, reported that the plastic container manufacturer is preparing to file for bankruptcy, which is expected to happen next week.
In response to these reports, Tupperware shares fell by 15.8 percent at the session's opening, reaching 34 pence, and closed the day with a 57-percent decline.
