The company, which gave rise to the familiar word “tapper” as it essentially shaped food storage for much of the century, plans to enter legal protection after breaching the terms of its debt and enlisting legal and financial advisers , as sources who asked to remain anonymous told Bloomberg.
The company’s stock closed yesterday with a drop of 57%, while in electronic post-session trading, it lost another 15.8%.
The bankruptcy preparations follow protracted negotiations between Tupperware and its creditors over how to manage more than $700 million in debt. Lenders agreed this year to give it a breather on the breached loan terms, but the company’s situation has continued to deteriorate.
The plans are not final and may change, the sources said. A Tupperware spokesman declined to comment.
Tupperware has for years warned of doubts about its ability to stay afloat. In June, it made plans to close its only U.S. factory and lay off nearly 150 employees. Last year, it replaced CEO Miguel Fernandez and several board members as part of an effort to turn around its downward spiral, appointing Laurie Ann Goldman as its new CEO.
Tupperware introduced its plastic products to the public in 1946 after founder Earl Tupper invented their flexible airtight seal.
The brand was launched into American homes primarily through sales parties organized by women in the sales suburbs.
The company has continued in its nearly 80 years of operation to rely heavily on direct sales from an army of amateur sellers, counting more than 300,000 independent sellers in 2022.
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