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Iconic Tupperware Brands Seeks Chapter 11 Bankruptcy

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NEW YORK — Tupperware Brands, which revolutionized food storage decades ago, has filed for Chapter 11 bankruptcy protection.

Tupperware, based in Orlando, Florida, intends to continue operations during the bankruptcy proceedings and will seek court clearance for a sale “in order to protect its iconic brand,” the firm announced shortly before midnight on Tuesday.

The corporation is seeking bankruptcy protection as it attempts to revitalize its operations. Tupperware sales increased slightly during the early stages of the COVID-19 epidemic, but overall sales have been steadily declining since 2018 owing to increased competition. Financial difficulties have continued to mount for the corporation.

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Iconic Tupperware Brands Seeks Chapter 11 Bankruptcy

Doubts about Tupperware’s future have persisted for some time. Last year, the company sought extra financing as it warned investors about its capacity to continue operations and the prospect of being delisted from the New York Stock Exchange.

The NYSE issued the company an extra non-compliance warning for failing to publish its annual results with the Securities and Exchange Commission earlier this year. In recent months, Tupperware has continued to raise concerns about its capacity to stay solvent, with an August securities filing citing “significant liquidity challenges.”

Tupperware filed for bankruptcy on Tuesday, reporting more than $1.2 billion in total obligations and $679.5 million in total assets. The company’s shares have plunged 75% this year and finished Tuesday at around 50 cents each.

“The reality is that the decline at Tupperware is not new,” Neil Saunders, managing director of GlobalData, wrote in a commentary on Wednesday. “It is very difficult to see how the brand can get back to its glory days.”

Saunders explained that many consumers have been switching to cheaper home storage brands, and that competition has increased over time, particularly with the advent of online platforms like Temu and retailers like Target beefing up their own home storage and kitchenware brands.

Tupperware’s origins go back to 1946. According to the company’s website, shortly after the Great Depression, chemist Earl Tupper found inspiration while making moulds at a plastics factory, embarking on a mission to create an airtight seal for a plastic container, similar to that on a paint can, to assist families in saving money on food waste.

The brand enjoyed tremendous expansion in the mid-twentieth century, particularly with the introduction of Tupperware parties, which began in 1948. Tupperware parties, in particular, provided many women with the opportunity to run their own businesses from the comfort of their own homes, selling their products to social circles.

The approach worked so successfully that Tupperware finally pulled its products from retailers. In Tuesday’s bankruptcy statement, the firm stated that there are no immediate modifications to Tupperware’s independent sales consultant agreements.

According to court records filed Tuesday, Tupperware now employs over 5,450 people in 41 countries and works with a global sales force of over 465,000 consultants who sell products on a freelance basis in approximately 70 nations.

Tuesday’s announcement also mentioned plans to “further advance Tupperware’s transformation into a digital-first, technology-led company,” potentially indicating a shift towards increased reliance on the brand’s website or more online-focused marketing, though the company did not provide specifics.

In a statement, Tupperware President and CEO Laurie Ann Goldman recognised the company’s recent financial problems and stated that the bankruptcy process is intended to provide “essential flexibility” while it pursues this transformation. She also stated that the brand was not going anywhere.

Iconic Tupperware Brands Seeks Chapter 11 Bankruptcy

“Whether you are a dedicated member of our Tupperware team, sell, cook with, or simply love our Tupperware products, you are a part of our Tupperware family,” Goldman stated in an email. “We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process.”

Goldman, who previously served as CEO of Spanx, was appointed CEO of Tupperware in October 2023, as part of a bigger leadership transition. Over the last year, the corporation has established a new management team.

SOURCE | AP

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Forced Sale Google Chrome Could Fetch $20 Billion

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Antitrust officials in the US could force the sale of Google’s Chrome browser for up to $20 billion, demonstrating the tremendous worth of the world’s most popular web browser.

Bloomberg Intelligence attributes Chrome’s projected worth to its more than 3 billion monthly active users. The US Department of Justice is preparing to request a federal judge order the browser’s separation from Google’s parent company, Alphabet.

Chrome’s worth comes from its overwhelming 61% market share and its crucial role in Google’s advertising ecosystem. User data enables businesses to better target adverts, and the browser also acts as an important distribution mechanism for Google’s AI technologies.

Industry analysts think it may be difficult to find a suitable buyer. While tech behemoths like Amazon could finance the purchase, they would likely face regulatory scrutiny.

AI businesses, such as OpenAI, may emerge as more viable contenders. They could potentially leverage Chrome to broaden their reach and develop an advertising business.

“It’s not directly monetizable,” one analyst told Bloomberg. “It functions as a gateway to other things. It’s unclear how you would assess that in terms of pure revenue generation.”

Google opposes prospective sales, claiming that they will hamper innovation. The firm does not break out Chrome’s revenue individually in its financial filings, even though the browser’s user data plays an important part in the company’s principal revenue stream, advertising.

The DOJ’s suggestion follows Judge Amit Mehta’s August decision that Google had illegally monopolized the search industry. The judge will consider the recommended remedies at a two-week hearing in April 2024, with a final judgment due in August 2025.

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Bitcoin Has Set a New Record And Is Approaching $100,000.

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(VOR News) – Bitcoin broke beyond the $98,000 mark for the first time on Thursday as investors awaited Donald Trump’s second term as president. All of this happened during the day. As such, cryptocurrency has reached a significant turning point.

According to Coin Metrics, the top cryptocurrency was trading at $97,541.61 during the most recent trading session. Merchants provided this information. This suggests a price gain of more than three percent during the previous trading session.

When the period began, Bitcoin peaked at $98,367.00.

During the premarket trading session, MicroStrategy, a platform that facilitates cryptocurrency foreign exchange trading and serves as a bitcoin proxy, saw a 13% gain. Coinbase, on the other hand, had a 2% rise during that period. Furthermore, all of these increases occurred simultaneously.

The market value of Mara Holdings increased by 9%, which helped raise the valuation of mining companies overall. This was among the factors that led to the total rise.

Because of the widespread belief that President Trump will usher in a new era of prosperity for cryptocurrencies, one marked by more favorable laws and the possible creation of a national strategic bitcoin reserve, the price of Bitcoin has been rising steadily this month.

The most recent change brought about by the increase was the consequence of higher financing rates and more open interest in the futures market during Asian trading hours. The rise was the catalyst for this change. This action was prompted by the ensuing rush.

Throughout its lifespan, this legislation was the catalyst for this change for a variety of reasons. At the same time, spot market premiums decreased, according to CryptoQuant statistics. All of this happened at the same time.

Furthermore, a number of short liquidations have been sparked by the recent spikes in Bitcoin’s price, which has caused the price to rise overnight. As a result, the price has gone up much more. As a result, the total number of short liquidations has increased.

According to CoinGlass, these liquidations have effectively produced more than $88 million in capital during the last 24 hours.

Rob Ginsberg, an analyst at Wolfe Research, noted in a study released on Wednesday that “historically, following previous movements of this magnitude, Bitcoin has either entered a consolidation phase or disregarded the overbought condition as investors accumulate.” This phrase relates to the fact that this particular move has happened before.

Ginsberg stated this in reference to the evolution of Bitcoin over time.

Ginsberg’s answer makes reference to Bitcoin’s propensity to go through a period of consolidation. The comment also made reference to this.

He said, “Considering we are emerging from an extended consolidation phase and the price has reached a new high, it suggests that the pursuit is underway.”

The crucial psychological milestone of $100,000 is expected to be reached in the upcoming weeks, and this breakthrough could happen as early as Thursday. It seems likely that this level will be reached. There is a chance that this new development will take place.

This task will be carried out against the backdrop of this historical era. In addition, if Trump were to win a second term, federal budget deficits would increase, inflation would likely increase, and the dollar’s position in international affairs would change.

The administration that Trump would run during his presidency would be responsible for these consequences. All of these characteristics would positively impact the value of Bitcoin as a currency if they were taken into account in the order that they are presented.

The price of bitcoin had risen by more than 130% by the beginning of 2024.

SOUREC: CNBC

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PayPal’s Technical Challenges Are Affecting Thousands Of Customers Globally.

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Target Struggles in the Third Quarter: Offers Tempered Holiday Outlook and Price Cuts

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(VOR News) – Target experienced a modest rise in sales during the third quarter; nevertheless, profitability declined due to reduced customer spending attributed to inflation and adverse effects from the ongoing costs associated with the October dockworker strike.

Despite ongoing consumer expenditure in the United States, but with more prudence, the Minneapolis retailer did not meet Wall Street’s forecasts for the quarter and similarly disappointed industry analysts with its projections for the final quarter of the year.

Target’s reduction in prices for Christmas products, including a Thanksgiving promotion that lowered the cost of the holiday feast relative to last year’s total, raises concerns about disappointing quarterly results.

Target’s latest quarter sharply contrasts with competitor Walmart, which reported another quarter of exceptional revenues on Tuesday and provided positive forecasts for the forthcoming holiday season. Amazon disclosed last month that its quarterly profits had risen. Amazon surpassed projections with an 11% rise in quarterly revenue.

Target fell over 21% on Wednesday morning.

Chairman and CEO Brian Cornell stated, “We encountered distinct challenges and financial constraints that impacted our overall performance.”

FactSet reports that Target’s net income for the quarter ended November 2 was $854 million, or $1.85 per share, markedly below the anticipated $2.30 and a decline from $971 million, or $2.10 per share, in the same quarter of the previous year.

Despite an increase in sales to $25.67 billion from $25.4 billion the previous year, they fell short of Wall Street’s projections.

Target announced that for the fiscal fourth quarter, it anticipates earnings per share to fall between $1.85 to $2.45. This amount is below the $2.65 per share forecast by analysts surveyed by FactSet.

The retailer announced that in the third quarter, its comparable sales, derived from stores and digital platforms operational for a minimum of one year, increased by 0.3%.

This is inferior to the second quarter’s 2% growth. Several months of decreases, comprising a 3.7% reduction in the first quarter and a 4.4% reduction in the company’s final quarter of 2023, were counterbalanced by the rise in the April–June period.

Cosmetics sales rose by almost 6%, whilst food, beverages, and necessities such as shampoo experienced gains in the low single digits relative to the previous year.

The positive attributes were negligible. Target’s quarterly customer traffic rose by 2.4%. Target officials report that this represents an increase of 10 million sales transactions compared to the previous year. Digital comparable sales rose by 10.8% due to a 20% enhancement in same-day delivery facilitated by the Target Circle loyalty program and double-digit growth in its drive-up service.

Target encountered several challenges.

Target’s food and beverage sales constitute under 25% of overall sales, indicating a greater dependence on luxury items such as apparel and accessories.

Target management acknowledged that the company, similar to other retailers, had to redirect specific items due to the strike of 45,000 dockworkers, the first occurrence since 1977.

The accumulation of commodities in warehouses escalated operational expenses and diminished corporate earnings.

The commitment by President-elect Donald Trump to impose elevated import tariffs is resulting in difficulties for Target and other enterprises. Trump advocates for a 60% tariff on Chinese imports and a 20% levy on all other products. Cornell stated that, despite monitoring trends meticulously, the corporation has prioritized diversifying its supplier network.

“Currently, there exists considerable uncertainty regarding future developments, and we will exercise our flexibility to adapt as necessary,” he stated on the call.

Buyers remain apprehensive due to ongoing uncertainty, as prices, albeit decreasing, remain elevated compared to a few years prior.

“They are exhibiting significant patience, pursuing promotions and outstanding value on essential pantry items,” Cornell stated during a conference call with reporters. “Over the year, they have consistently focused on discretionary categories and are practicing prudent shopping behaviors.”

Target officials indicated a decline in television purchases, although they expressed interest in incorporating candles, frames, and flowers into their home décor.

Target has been reducing prices to boost sales. Last spring, it reduced costs for numerous essentials, including milk and diapers. Almost fifty percent of the numerous goods offered this Christmas are priced below $20. Target is offering a Thanksgiving dinner bundle for four people at $20, which is $5 less than its 2023 Thanksgiving meal package.

SOURCE: USN

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