Tupperware Brands may reportedly file for bankruptcy as per the Bloomberg report. The company was founded in 1946 by Earl Tupper, its popularity exploded in the 1950s as women held “Tupperware parties” at home to sell food storage containers as they sought empowerment and independence.
During the Covid pandemic, Tupperware witnessed a boost in sales as families cooked more and used the boxes for leftovers.
However, post-pandemic, its sales declined. Bloomberg news agency reported that the home goods brand is planning to enter court protection after it breached the terms of its debt and enlisted legal and financial advisers.
The bankruptcy preparation follows protracted negotiations between Tupperware and its lenders over how to manage more than $700 million in debt.
The lenders agreed to give some breathing room to the US-based company but it continued to deteriorate.
In March, Tupperware warned that it was uncertain about its business growth and faced a liquidity crunch. In June this year, the company planned to shutter its US factory and sack 150 employees.
Last year, it replaced Chief Executive Officer Miguel Fernandez and other board members and appointed Laurie Ann Goldman as the new CEO.
The company has continued its operation for 80 years to rely largely on direct sales by a slew of vendors.