Tupperware Brands, a 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 troubled company says it will seek court approval to begin a sale of the business and intends to continue operating during the trial.
Last year, the 78-year-old company warned it could be disrupted unless it quickly raises new capital.
Tupperware has been trying to reposition itself to younger customers as it faces sluggish sales.
“We plan to continue to serve our valued customers with the high-quality products they love and trust throughout this process,” said the company’s CEO Laurie Ann Goldman. statement to investors.
The company’s shares fell 50% this week after reports that it plans to file for bankruptcy.
Tupperware has struggled for years to stem falling sales of its products in the face of cheaper competition.
After short sales during the crisis, as more people were cooking at home, the company saw demand continue to slide.
Rising costs of raw materials, higher wages and transportation costs have also eaten into its profits.
Tupperware has dominated its market for years, 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 flexible airtight seal containers.
It became very popular in the 1950s and 1960s when people held “Tupperware parties” in their homes to sell plastic containers to friends and neighbors.
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