Tupperware Brands and some of its subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday in the United States, giving in to dwindling demand for its once-iconic food storage containers and mounting financial losses.

“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 press release.

The storage container brand’s challenges included a decline in sales after a short-lived pandemic boost — when increased home cooking briefly drove demand for its colourful, airtight plastic containers.

A recent return to lower demand worsened the challenge of a post-pandemic jump in costs of raw materials, including plastic resin, as well as labour and freight.

Tupperware has reported a fall in sales for six consecutive quarters since the third quarter of 2021, as sticky inflation continued to dissuade its low and mid-income consumer base.

“As a result, we explored numerous strategic options and determined this is the best path forward,” Ms Goldman continued.

“This process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company better positioned to serve our stakeholders.”

In 2023, the company finalised an agreement with its lenders to restructure its debt obligations, and signed investment bank Moelis & Co to help explore strategic alternatives.

At the time, it warned of “substantial doubt” about its ability to keep operating in light of its poor financial position.

Tupperware has been planning to file for bankruptcy protection after breaching the terms of its debt and enlisting legal and financial advisers, Bloomberg reported on Monday.

The company listed $US500 million to $US1 billion in estimated assets and $US1 billion to $US10 billion in estimated liabilities, according to bankruptcy filings in the US Bankruptcy Court for the District of Delaware.

The filings numbered Tupperware’s creditors to be between 50,000 to 100,000.

The company said on Tuesday it would seek court approval to continue operating during the bankruptcy proceedings and also seek approval for a sale process for the business to protect its brand.

Reuters/AFP