Tupperware, the famous company known for making plastic food containers, is getting ready to file for bankruptcy as the company may not have enough money to pay its debts and could ask a court for help to stay in business.
According to a report from Bloomberg, Tupperware has hired advisors to help them figure out what to do next. The company could officially file for bankruptcy this week, but the plan is not final and could still change.
Tupperware Nears Bankruptcy Filing
Tupperware has been facing big financial problems. It owes over $700 million in debt, and its business has been struggling for years.
On Monday (September 16), the company's stock dropped by 57.5% during the regular trading day, and then another 16.7% after the market closed. This year alone, the value of Tupperware's stock has fallen by 74.5%.
Tupperware was started in 1946 by Earl Tupper, who invented the company's famous plastic containers with airtight lids. The company became popular by having women host sales parties in their homes, showing the products to friends and family.
For many years, Tupperware was a big success, but recently, the company has had trouble keeping up with other brands that sell similar products for cheaper prices.
To try and save the company, Tupperware made changes to its leadership last year. In October 2022, the company replaced its CEO, Miguel Fernandez, with Laurie Ann Goldman, who used to be the CEO of Spanx, a company that sells undergarments.
Despite these changes, Tupperware's problems have continued to grow. Earlier this year, the company warned that it might go out of business and also said it was behind on filing important financial reports.
One of the biggest challenges Tupperware faces is its huge debt. The company has been talking with lenders to get some relief from its $700 million debt.
While some lenders agreed to help earlier this year, Tupperware's financial situation has only gotten worse. Some experts believe that filing for bankruptcy could be the company's only way to manage its debt and keep operating.
In addition to its money troubles, Tupperware announced in June that it would close its last manufacturing plant in the United States by January 2025, according to Quartz. This means more than 140 employees will lose their jobs, with layoffs starting on September 28. This closure is part of the company's effort to cut costs and stay in business.
Company Closures
Tupperware's difficulties are not unique. Other big retail companies like Express, Red Lobster, and Big Lots are also struggling with financial problems.
Many of these companies are dealing with competition from other brands, changing customer preferences, and economic challenges. As a result, some companies have been forced to close stores or lay off employees to try and survive.
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