Tupperware Brands, the company that revolutionized food preservation decades ago, has filed for Chapter 11 bankruptcy protection.
The company wants to continue its operations and will seek court approval for a sale, the company said just before midnight on Tuesday.
The company is seeking bankruptcy protection amid a growing battle to revive its business. Tupperware sales growth improved during the early days of the COVID-19 pandemic, but overall sales have been steadily declining since 2018 amid increased competition. And financial problems are mounting for the Orlando, Florida-based company.
Doubts about Tupperware’s future have been circulating for some time. Last year, the company sought additional financing after warning investors about the ability to stay in business and the risk that the company will be delisted from the New York Stock Exchange.
Shares have fallen 75% this year and closed Tuesday at about 50 cents each.
Tupperware experienced an explosive growth in the mid-20th century with the advent of Tupperware Parties, which were first held in 1948. Tupperware parties gave many women the opportunity to run their own businesses from home and sell the products within social circles.
The system worked so well that Tupperware pulled its products from stores three years later. Social changes, namely fewer home-cooked dinners and more nights spent out, took their toll on Tupperware sales.