Tupperware to file for bankruptcy after 82 years of business
The legendary American brand Tupperware, which produces plastic containers, will file for bankruptcy. The company, which has operated for 82 years, is still struggling with financial problems despite loans taken out in August.
7:12 PM EDT, September 17, 2024
According to "Rzeczpospolita," Tupperware, founded in 1942 and known for its direct sales model through consultants visiting customers, is having difficulties in the growing e-commerce platforms. Even though Tupperware began transitioning to online sales, its competition is gaining an increasing advantage.
The rescue operation did not help
In early August 2024, Tupperware believed it could avoid bankruptcy thanks to external financial support. The Tupperware rescue operation was supported by memes, and online investors drove up the stock value, perceiving it as low-risk with high profit potential, the report reads.
At that time, the company was supposed to agree with creditors, reducing interest by $150 million. Furthermore, it secured $21 million in new financing, extended the repayment period for about $348 million, and reduced its debt by about $55 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 opening of the session, reaching 43 cents, and closed the day with a 57-percent decline.
