The American household products company is unable to find alternatives for its business and faces a debt of US$700 million.
Tupperware Brands, The American home goods producer is preparing to file for bankruptcy this week, Bloomberg reported. The decision would come after several years of difficulties and efforts. to revive business amid declining demand.
Tupperware shares fall 59% this Tuesday. A red that represents 54% in the last five days and 56% in the last month.
The home goods brand, which for decades has been a leader in food storage, plans to seek court protection after breaching the terms of its debt and has recruited legal and financial advisers.
On Monday afternoonthe company’s shares fell more than 50% on Wall Street, 52-week lows, after information about its impending bankruptcy circulated, despite the fact that the company did not say anything about it. The sharp drop in the price of Tupperware shares is indicative of the challenges the company faced in the market, as investors react to a combination of corporate headwinds and changing consumer trends.
The bankruptcy preparations follow protracted negotiations between Tupperware and its financiers over how to manage more than $700 million in debt. The lenders agreed this year to give a break to breached loan terms, but the situation continued to deteriorate.
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Tupperware’s inability to deal with its debts
Tupperware warned for years about doubts about his ability to stay in business. EIn June, it made plans to close its only U.S. factory and lay off nearly 150 employees. Last year, it replaced Chief Executive Officer Miguel Fernandez and several board members as part of an effort to turn around the business, naming Laurie Ann Goldman as its new CEO.
Founded 80 years ago, Tupperware made the big leap in 1964, when it introduced its packaging to the public with the original hermetic seal designed by its founder, Earl Tupper. It was then that the brand burst into American homes, largely through sales meetings organized by middle-class women in the suburbs of big cities.
Since then the company has continued to rely heavily on direct sales from an army of amateur suppliers. In 2022 The firm had more than 300 thousand independent sellersOver the years, the term “tupper”, translated into Spanish as táper, became synonymous with plastic food containers.
Source: Ambito
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