Tupperware filed for bankruptcy

By: Trademagazin Date: 2024. 09. 18. 11:49

Tupperware, once an essential item in every kitchen, has now filed for bankruptcy and the company is trying to sell itself with court permission to continue operating. The news was reported by the BBC, according to which the 78-year-old company was in crisis as a result of global economic difficulties and changed consumer habits.

It did experience some upswing during the Covid epidemic, as home cooking became widespread due to the closure of restaurants, but after the pandemic, traffic began to decline again. The increase in raw material prices and transport costs, as well as the increase in wage costs, also contributed to this. The company’s CEO, Laurie Ann Goldman, emphasized that the difficult macroeconomic environment had a heavy impact on the company’s financial situation.

Tupperware has long struggled for sustainable operations, but the dramatic change in customer habits and the company’s accounting scandals further aggravated the situation. According to Hargreaves Lansdown’s financial expert, customers are gradually moving away from polluting plastic products, which has also contributed to the company’s decline. The company already warned last year that it was facing serious financial problems, and expensive loans were also a big problem.

In addition to the company’s debt of 700 million dollars, their loan agreements were renegotiated three times last year. Stock prices got a temporary boost in July 2023 when Redditors started buying up Tupperware shares, sending the stock from 90 cents to over $3 in 24 hours. However, this was short-lived and not a long-term solution.