Tupperware Brands, the US maker of food storage containers, and some of its subsidiaries have filed for bankruptcy in the US in the face of ballooning losses.
The embattled company says it will ask for court permission to start a sale process of the business and aims to continue operating during the bankruptcy proceedings.
Last year, the 78-year-old firm warned that it may go bust unless it could quickly raise new financing.
Tupperware has been attempting to reposition itself to younger customers as it faced sliding sales.
“We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” the company’s chief executive Laurie Ann Goldman said in a statement to investors, external.
The company’s shares have fallen by more 50% this week after reports that it was planning to file for bankruptcy.
Tupperware has for years been struggling to stem falling sales of its products in the face of cheaper competition.
After a brief surge in sales during the pandemic, as more people cooked at home, the firm saw demand continue to slide.
The rising cost of raw materials, higher wages and transportation costs have also eaten into its profit margins.
Tupperware dominated its market for years, becoming so synonymous with food storage containers that many people use its name when referring to any plastic container.
The company was founded in 1946 by Earl Tupper, who patented the containers’ flexible airtight seal.
It became well-known in the 1950s and 1960s when people held “Tupperware parties” in their homes to sell the plastic containers to friends and neighbours.
