Tupperware, the iconic food storage brand, is facing a financial crisis with $700 million in debt. The company, known for its colorful containers found in households worldwide, may soon file for bankruptcy protection.
Nearly every household owns a Tupperware container. The US manufacturer of food storage products is one of the world’s traditional brands. However, bankruptcy appears to be imminent. The colorful food storage containers from Tupperware are a staple in most households. These plastic bowls began their triumphant march in the 1950s when enterprising housewives started marketing the products to friends and acquaintances at so-called “Tupperware parties.” The manufacturer promised that food would stay fresh for a long time in these airtight containers.
Now, it seems the air has finally gone out of Tupperware. The company is on the verge of bankruptcy. According to a report by Bloomberg on Monday, citing people familiar with the matter, Tupperware could file for creditor protection as early as this week. The preparations for the bankruptcy filing follow lengthy negotiations between Tupperware and its creditors over handling debts of more than $700 million, the report said. Tupperware initially did not respond to a Reuters request for comment.
Stock price plummets after news breaks
The company, founded in 1946 by businessman Earl Silas Tupper, has been struggling financially for some time. Despite a brief upturn during the COVID-19 pandemic, sales have declined in recent quarters. In March, the company had already warned of liquidity problems and expressed doubts about its ability to continue as a going concern.
In 2023, Tupperware attempted to turn things around by restructuring its board. Laurie Ann Goldman became the new CEO, replacing the unsuccessful Miguel Fernandez, who had only been appointed in 2020. However, the company’s problems continued to grow.
The company’s stock plunged 15.8% in after-hours trading following the news, after already falling 57% in regular trading. Overall, the stock price has dropped 74.5% over the past year.
