Tupperware is a well-known company in the kitchenware sector. Its lunch boxes, water bottles and other items are widely used. But now the company is facing a financial crisis. The company’s sales have declined significantly. As a result, the company is in debt of about $700 million (about Rs. 5,860 crore). Due to failure to repay loans, the company and some of its subsidiaries have filed for bankruptcy in the US.
Things have gotten so bad for Tupperware, the giant bottle and tinfoil maker, that it is now on the brink of bankruptcy. On Tuesday, some of its subsidiaries filed for bankruptcy.
The company’s situation has worsened due to the COVID-19 pandemic
Laurie Ann Goldman, chairman and CEO of the company, said that the company’s financial situation has been severely affected by the challenging macroeconomic issues in the past few years. Especially during the epidemic, the company’s situation has worsened and it has not recovered yet. After the COVID-19 epidemic, the company’s product sales fell sharply. When more and more people began to cook at home and use sealed boxes to store leftover food, the company’s losses increased further.
After the epidemic, the condition worsened like this
Post-pandemic, soaring costs of key raw materials such as plastic resins, coupled with increased labor and freight costs, further eroded the company’s profit margins, impacted the company’s balance sheet and worsened its financial condition. In August, Tupperware expressed concerns about its operational capabilities for the fourth time after November 2022. The company had said it was facing a liquidity crunch.
The company owes a huge debt
US company Tapware is also heavily in debt. The company’s estimated assets are between $500 million and $1 billion. According to Bloomberg, the company is planning to file for bankruptcy after violating the terms of its loans and appointing legal and financial advisers. The report said that bankruptcy preparations may begin after lengthy negotiations with lenders for a loan of more than $700 million.
Tapware is a 77-year-old company
The American Tiffin Box Manufacturing Company was founded in 1946. When chemist S Tupper noticed that food spoiled due to improper storage. Under such circumstances, he thought of making lunch boxes to save people money and reduce food problems, and soon established a large company. The company made a revolutionary change in saving time, money, space, food and energy, so its popularity continued to grow and became popular all over the world.
The company, which makes plastic lunch boxes, bowls and bottles, has operations in 70 countries around the world, but is now on the brink of bankruptcy and facing financial problems.
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