Tupperware files for Chapter 11 bankruptcy
Following a Bloomberg report on early Tuesday, September 17th that a bankruptcy filing was pending, Tupperware filed for Chapter 11 bankruptcy later the same day.
Quoting Bloomberg, Reuters reported on early Tuesday that Tupperware had “more than $700 million in debt”.
The company’s shares were down 15.8% at 43 cents after the bell. They closed down 57%.
News of Tupperware being on the verge of collapse surfaced last year in April.
Back then Tupperware’s shares were trading at $1.24, down 93% over the preceding twelve month period. Today Tupperware’s shares are trading at 51 cents.
Cited reasons for Tupperware’s Chapter 11 bankruptcy include;
A post-pandemic jump in costs of raw materials such as plastic resin, as well as labor and freight, further dented Tupperware margins.
Tupperware’s listed assets sit at $500 million to a billion. Estimated liabilities are between $1 billion to $10 billion.
As opposed to a Chapter 7 liquidation, Chapter 11 bankruptcy allows a business to restructure its debt.
What that looks like for Tupperware will play out over the following months. It’s also possible for a Chapter 11 bankruptcy to be converted to a Chapter 7 if a business can’t be salvaged.
This short video appeared on a German YT channel today.
youtube.com/shorts/42s6s20J1ag
Yoh ..I love ❤️ this stocks ..may the Lord help them to find a way to stand again on their feet