Tupperware brands in financial trouble, plans to file bankruptcy

Tupperware, a brand that for much of a century has defined food storage is facing an acute financial crunch with a debt burden of over $700 million. 

The company’s shares slipped by more than 50% as of 3:53 p.m. in New York on the news.

In June it made plans to shut its only US factory and sack almost 150 workers. Last year, Tupperware even replaced its Chief Executive Officer Miguel Fernandez and several board members to turn the business around, electing Laurie Ann Goldman as the new CEO but in vain.

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Why sudden plans for bankruptcy?

According to reports, the company is planning to file a bankruptcy soon. 

In recent years, Tupperware Brands has faced increasing competition from local brands offering similar products at lower prices. Even after changing its leadership and business strategy, it has been unable to cover its losses.

In April, Tupperware issued a legal notice about its ability to continue operating and disclosed delays in financial filings. 

If Tupperware files for bankruptcy, it would impact consumers and investors alike. The products might become less readily available in the market and investors could face significant losses. 

According to Bloomberg News, the globally familiar storage-container company plans to file for bankruptcy this week. Its stock price knocked down to 57% at Monday's close and continued to fall in Tuesday's pre-market trading.

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The end of an era

Earl Tupper started the Tupperware brand in 1946, offering food storage containers with an air-tight seal. The company flourished in the 1950s with a new marketing concept with suburban housewives hosting "Tupperware parties" and selling the products to friends and neighbors.

The brand appeared to revive during the  COVID-19 pandemic as consumers were needing plastic containers to store food items at home. Tupperware even enjoyed a brief revival as a meme stock in the previous year. However, the company could not gain momentum and was forced to close its factory and lay off employees in June. The bankruptcy would mark the end of a brand that has been a household name for decades.