(Reuters) -Tupperware Brands filed for Chapter 11 bankruptcy protection late on Tuesday, succumbing to mounting losses amid poor demand for its once-iconic food storage containers.
The company’s popularity exploded in the 1950s as women of the post-war generation held “Tupperware (NYSE:) parties” at their homes to sell food storage containers as they sought empowerment and independence.
However, it has lost its edge to rivals making cheaper and more environmentally friendly containers.
Last month, Tupperware raised doubts about its ability to remain in business after flagging potential bankruptcy risk several times due to liquidity constraints.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Chief Executive Officer Laurie Goldman said in a statement.
The company said it intends to obtain court approval to continue selling its products and charting out a sale process for the business.
The company has been trying to turn its business around for years after reporting several quarters of falling sales.
A post-pandemic jump in costs of labor, freight and raw materials such as plastic resin have also pressured its business.
Last year, the company’s stock saw wild swings amid “meme stocks” rallies, where retail investors coordinate on social media and typically focus their speculative bets on companies that are financially struggling or have high short interest.
Tupperware listed $500 million-$1 billion in estimated assets and $1 billion-$10 billion in estimated liabilities, according to bankruptcy filings in the U.S. Bankruptcy Court for the District of Delaware. It listed the number of creditors to be between 50,001 and 100,000.
In 2023, the company finalized an agreement with its lenders to restructure its debt obligations, and signed investment bank Moelis (NYSE:) & Co to help explore strategic alternatives.