Tupperware Brands, the company that revolutionized food storage decades ago, has filed for Chapter 11 bankruptcy protection.
The company plans to continue operating and will seek court approval for a sale, it said just before midnight on Tuesday.
The company is seeking bankruptcy protection amid growing struggles to revitalize its business. Tupperware sales growth improved during the early days of the COVID-19 pandemic, but overall sales have been in steady decline since 2018 due to rising competition. And financial troubles have continued to pile up for the Orlando, Florida, company.
Doubts around Tupperware's future have floated around for some time. Last year, the company sought additional financing as it warned investors about its ability to stay in business and its risk of being delisted from the New York Stock Exchange.
Shares have fallen 75% this year and closed Tuesday at about 50 cents apiece.
Tupperware experienced explosive growth in the mid 20th century with the rise of Tupperware parties, first held in 1948. Tupperware parties gave many women a chance to run their own businesses out of their homes, selling the products within social circles.
The system worked so well Tupperware removed its products from stores three years later. Social changes, namely fewer dinners made from scratch and more nights spent dining out, took a toll Tupperware sales.
The Associated Press