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 faces sliding sales.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Tupperware’s chief executive Laurie Ann Goldman said in a statement to investors.
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.
Tupperware was a major innovation, as it utilised new plastics to keep food fresh for longer, which was invaluable when refrigerators were still too expensive for many families.
However, it was not an immediate success.
It was the pioneering saleswoman Brownie Wise who helped turn the brand into a household name, literally.
She developed an approach in which salespeople, who were mostly women, sold Tupperware to other women in their homes, better known as “Tupperware parties”.
According to the company, Tupperware is now sold in 70 countries around the world.