Tupperware Brands is now filing for bankruptcy this week according to people with knowledge of the plans, reports Bloomberg.
Tupperware Brands is reportedly preparing to file for bankruptcy as early as this week, according to sources familiar with the situation.
The iconic home goods company, which has been a staple in food storage for nearly a century, is seeking court protection after failing to meet its debt obligations and engaging legal and financial advisers to navigate its challenges.
Following the news, Tupperware’s stock plummeted by over 50% by 3:53 p.m. in New York.
The company’s bankruptcy preparations come after extended negotiations with lenders regarding its more than $700 million debt.
While lenders provided temporary relief earlier this year, Tupperware’s financial situation has continued to worsen.
The company’s plans are still in flux and may evolve further. A Tupperware representative declined to comment on the matter.
For years, Tupperware has expressed concerns about its ability to sustain operations.
In June, the firm announced the closure of its sole U.S. factory, resulting in nearly 150 job losses.
Last year, the company undertook a significant leadership change, replacing CEO Miguel Fernandez and several board members, and appointing Laurie Ann Goldman as the new CEO in a bid to revitalize the struggling brand.
Founded in 1946 by Earl Tupper, Tupperware gained popularity through its innovative plastic products and flexible airtight seal, largely promoted via sales parties hosted by suburban women.
Over its nearly 80 years in business, Tupperware has relied heavily on direct sales, maintaining a network of over 300,000 independent salespeople as of 2022.
As Tupperware navigates this challenging period, the future of the brand remains uncertain.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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