Tupperware Brands, which was struggling with growing losses as a result of low demand for its once-popular colorful food storage containers, filed for bankruptcy late on Tuesday in Delaware.

The 1950s saw an explosion in its popularity as post-World War II women staged "Tupperware parties" at their houses to sell the containers in an effort to gain independence and self-determination.

But as the business battled to get more of its items into retail locations and online sales channels, its sales fell off in recent years. In the past, Tupperware has sold its products through independent sales agents; however, the business claims that this approach has not connected with today's consumers.

In a court filing in the U.S. Bankruptcy Court for the District of Delaware, Tupperware Chief Restructuring Officer Brian Fox stated that while almost everyone is aware of what Tupperware is, fewer people are aware of where to locate it. Tupperware flagged bankruptcy risk multiple times owing to liquidity issues, and last month it voiced worries about its capacity to stay in business.

According to court documents, the company owes $812 million in debt, the majority of which was acquired in July at a steep discount by distressed debt investors. According to Tupperware, the new lenders pushed the company to file for bankruptcy by attempting to confiscate its assets, including its intellectual property, such as its brand, using their debt position.

The company plans to carry on with business as usual while holding a 30-day bidding process to locate a buyer for the entire business. The company reported numerous quarters of declining sales, and it has spent years trying to turn the business around.

Its business was also impacted by a post-pandemic spike in labor, freight, and raw material expenses, including plastic resin. During "meme stocks" rallies in 2023, when ordinary investors band together on social media and concentrate their wagers on underperforming businesses with strong short interest, the company's price experienced extreme fluctuations.

According to bankruptcy documents, Tupperware is believed to have $500 million to $1 billion in assets and $1 billion to $10 billion in liabilities. It stated that there were between 50,000 and 100,000 creditors.