According to people who know the plans, Tupperware Brands Plans to file for bankruptcy as soon as this week, following a years-long effort to revive the business amid waning demand.
The 78-year-old Home Products brand is planning to enter court protection after it breached the terms of its debt and enlisted legal and financial advisers, said the people, who requested anonymity to discuss confidential information.
The company’s shares fell by more than 55% at the price of $0.51 as of 4:00 PM in New York.
The bankruptcy preparations follow protracted negotiations between Tupperware and its lenders over how to manage more than $700 million in debt. The lenders agreed this year to give it some breathing room on the violated loan terms, but the company continued to fall.
A Spokesperson for the Tupperware Brand declined to comment on final plans and changes.
Tupperware Brand warned of doubt in its ability to stay in business. In June it created plans to lay off almost 150 employees and to shutter its only US factory. Last Year, CEO Miguel Fernandez was replaced by Laurie Ann Goldman as the new CEO and included several board members to turn the business around.
Tupperware was introduced in 1946 and its plastic products to the public after founder Earl Tupper invented their flexible airtight seal. The brand exploded into American homes largely by way of sales parties hosted by suburban women.
The company has continued throughout its almost 80 years in operation to rely largely on direct sales by less skilled individuals, counting in regulatory filings more than 300,000 independent salespeople as of 2022.
Read More: Price of Gold and Silver Today.