The shares of home products maker Tupperware Brands crashed on Monday by 57% after multiple media outlets reported that the company is expected to file for bankruptcy.
According to reports, the company acknowledged that their attempts to revive the business have not given the desired results and will enter the bankruptcy process as soon as this week. It is already working with legal and financial advisors to plan for the next step.
The decision came after Tupperware Brands engaged in lengthy negotiations with its lenders about tackling the $700 million debt it accumulated. Although the lenders agreed to provide some leeway to the company, it recently violated the terms of its debts once again.
Tupperware Brands was initially founded in 1938 by Earl Tupper and saw a sizable rise several years later after its founder invented plastic containers with an airtight seal. After decades of success, the company has been struggling for the past several years due to a weakening demand. It attempted a number of cost-cutting moves, including layoffs and shutting down its plant in the United States, but these have proved futile.
Tupperware Brands’ stock opened at $1.18 per share on Monday morning before plunging to $0.51 per share by the end of the day. The company’s shares are currently 75% down year-to-date.