Tupperware Brands is preparing to file for bankruptcy as soon as this week. Bloomberg News reported. A person familiar with the plans said this on Monday.
The company's shares fell 57% to close at 51 cents.
Founded in 1946 by chemist Earl Tupper, the company exploded in popularity in the 1950s when it sold food storage containers to a post-war generation of women seeking self-sufficiency and independence by holding “Tupperware parties” in their homes.
The COVID-19 pandemic has boosted sales as families stay home, cook more and make more leftovers, but sales have been declining in recent quarters as the world starts to move again.
Tupperware plans to seek court protection after defaulting on its debt and has hired legal and financial advisers, Bloomberg News reported Monday.
The bankruptcy preparations reportedly came after protracted negotiations between Tupperware and creditors over how to manage its debts of more than $700 million.
Tupperware did not immediately respond to a Reuters request for comment.
In March, the company warned it was unclear whether it would be able to continue operating. Going concern faced a liquidity crisis.
