Changes in consumer behavior and a saturated market lead the company to consider legal protection
Household goods manufacturer Tupperware is on the verge of bankruptcy and could formalize the request as early as this week, according to information from Bloomberg released this Monday (16.Sep.2024).
The company, founded in 1946, has been facing a financial crisis attributed to changes in consumer behavior. In recent years, demand has fallen and Tupperware has failed in its attempts to recover.
In 2023, the household goods manufacturer had already signaled the possibility of bankruptcy, with a sharp deterioration in its financial situation, marked by billion-dollar debts. Its revenue in 2023 was US$ 1.7 billion, a significant drop from the US$ 2.7 billion a decade ago.
The bankruptcy filing comes after negotiations with creditors over more than $700 million in debt. Although creditors offered some flexibility on the terms of the loan, the company has been unable to recover. Bloomberg notes that plans may change. No Tupperware representative would comment on the situation.
Tupperware recently announced it was closing its only U.S. factory and laying off about 150 employees. Leadership changes, including replacing CEO Miguel Fernandez and several board members, were intended to turn things around, but the appointment of Laurie Ann Goldman as the new CEO failed to avert the crisis.
#Tupperware #file #bankruptcy #week #newspaper