Countdown for Tupperware, which Bloomberg reports is expected to file for bankruptcy as soon as this week after a long-running effort to revive the business amid declining demand.
According to the sources, who are not being named as the information is confidential, the company plans to enter legal protection after breaching the terms of its debt and has already hired legal and financial advisers for that purpose.
The company’s shares plunged more than 50% in New York on the news.
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 some breathing room on the breached loan terms, but the company’s image has continued to deteriorate.
Plans are not final and may change. A Tupperware representative declined to comment.
The company has continued in its nearly 80 years of operation to rely heavily on direct sales by an army of amateur salespeople
Tupperware’s efforts
Tupperware has been trying to survive for years. In June, it made plans to close its only U.S. factory and lay off nearly 150 employees. Last year, he replaced CEO Miguel Fernandez and several board members in an effort to turn the business around, appointing Laurie Ann Goldman as the new chief executive.
Tupperware introduced its plastic products to the public in 1946 after founder Earl Tupper invented their flexible airtight seal. The brand exploded into American homes primarily through sales parties organized by suburban women.
The company has continued its nearly 80 years of operation to rely heavily on direct sales from an army of amateur sellers, counting in regulatory filings more than 300,000 independent sellers as of 2022.
The home shows
The beginning of tupperware was in 1946 when Earl Tupper introduced his now legendary airtight lid. The airtight cover helped the food not dry out and not lose its taste and aroma inside the refrigerator.
Despite the revolution it brought, the new product did not have satisfactory sales in supermarkets, since consumers needed a demonstration to understand its uses and operation.
As a response to the above, Tupperware presents in 1948 a completely new way of approaching the consumer with home demonstrations. The demonstrations helped the sales increase spectacularly.
In fact, they were so successful that in 1951 he withdrew the products from supermarket shelves, which remarkably had now been reinstated – and continues to sell them only through home demonstrations.
The role of collaborators who carried out the home demonstrations was mainly taken up by women whose role in society was limited to the narrow contexts of their home and family.
Source: ot.gr
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