(Bloomberg) — Tupperware Brands Inc. is preparing to file for bankruptcy as soon as this week after a years-long turnaround effort amid sagging demand, people familiar with the matter said.
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The household goods brand, a food storage icon for nearly a century, plans to seek court protection after hiring legal and financial advisers following a default on its debt, said the people, who asked not to be identified discussing confidential information.
Following the news, the company’s shares fell by more than 50% as of 3:53 p.m. New York time.
The bankruptcy proceedings began after protracted negotiations between Tupperware and its creditors over how to deal with more than $700 million in debt. Creditors agreed this year to give the company leeway on loan terms it had violated, but the company’s performance continued to deteriorate.
The plans are not finalized and are subject to change. A Tupperware representative declined to comment.
Tupperware has warned for years that it was in doubt about its ability to stay in business. In June, it planned to close its only U.S. factory and lay off about 150 workers. Last year, the company replaced Chief Executive Officer Miguel Fernandez and several members of its board of directors and named Laurie Ann Goldman as its new CEO as part of a turnaround effort.
Tupperware introduced its plastic products to the public in 1946 after founder Earl Tupper invented a flexible, airtight seal. The brand exploded into American households, primarily through sales parties hosted by suburban women.
The company has relied heavily on direct sales by amateur sellers since its founding nearly 80 years ago, and said in regulatory filings that it had more than 300,000 independent sellers as of 2022.
(Updated to add share price drop in third paragraph.)
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