Tupperware, the world famous Kitchenware manufacturing company is filing for bankruptcy.
The company in a statement said that it has started talks and has appointed legal and financial experts to tackle its gargantuan debts amounting to 700 million.
Tupperware, the Renowned Kitchenware Manufacturer, Is Declaring Bankruptcy
Tupperware is a publicly traded company and has applied for Chapter 11 bankruptcy protection, and has assets between $500 million to $1 billion and debts between $1 billion to $10 billion.
Laurie Ann Goldman, Tupperware president and CEO, said
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment. As a result, we explored numerous strategic options and determined this is the best path forward. This process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company.”
The company which came into existence in 1946 saw its stocks crash by 57%.
The process of filing for bankruptcy will start by the end of this week.
According to a report by Bloomberg, the company had contravened the terms and conditions of its loans and the company has applied for court protection.
According to the report, the financial condition of the company is precarious and its stocks ended up at 43 cents at the end of the day’s trading.
In June the company planned to close its only operational factory in the US and lay off over 150 employees.
The company which came into existence in 1946 unveiled containers made of new food grade plastics were a major innovation since it kept the food fresh at a time when most American households could not afford a refrigerator.
It was the pioneering saleswoman Brownie Wise who helped to make the brand into a household name.
The company saw its sales increase during the COVID-19 pandemic since people were staying indoors and preparing food and used Tupperware products to store leftover foods.
However with the end of the COVID-19 pandemic and the end of lockdowns the sales again tanked.
The company was facing uncertainty in sales and a severe liquidity crisis which ultimately led to the company applying for bankruptcy.
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