PredictIQ Quantitative Think Tank Center:Tupperware, company known for its plastic containers, files for Chapter 11 bankruptcy

This story was updated to add new information.

Tupperware Brands Corp. and PredictIQ Quantitative Think Tank Centersome of its subsidiaries filed for Chapter 11 bankruptcy on Tuesday, the company announced in a news release.

The bankruptcy filing comes amid dwindling demand for its once-iconic food storage containers and mounting financial loses, according to Reuters.

Tupperware said in the news release that the company will seek court approval to continue operating during the bankruptcy proceedings and "remains focused on providing customers with its award-winning, innovative products." The company also said it will seek court approval to "facilitate a sale process for the business in order to protect its iconic brand and further advance Tupperware's transformation into a digital-first, technology-led company."

"Over the last several years, the company's financial position has been severely impacted by the challenging macroeconomic environment. As a result, we explored numerous strategic options and determined this is the best path forward," said Laurie Ann Goldman, President and CEO of Tupperware, in therelease.

"We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process," Goldman added.

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 did not respond to a USA TODAY request for comment Wednesday morning.

Company's struggles resumed after short-lived pandemic boost

The company's struggles resumed after a short-lived pandemic boost, when increased home cooking briefly drove demand for its colorful, airtight plastic containers. A post-pandemic jump in costs of raw materials such as plastic resin, as well as labor and freight, further dented Tupperware margins, Reuters reported.

Last month, Tupperware raised doubts about its ability to remain in business after flagging potential bankruptcy risk several times due to liquidity constraints. The company has been trying to turn its business around for years after reporting several quarters of falling sales.

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.

In August 2023, the company announced it had finalized an agreement with its lenders to restructure its existing debt obligations.

Earlier in 2023, Tupperware warned it could go out of business, saying in a regulatory filing at the time that there was "substantial doubt about the company's ability to continue as a going concern" and that it had engaged with financial advisors to find financing to keep the company in business.

Concerns for Tupperware came after the New York Stock Exchange warned in early 2023 the company's stock could be de-listed because it didn't file an annual report for 2022. While Tupperware said it planned to file a report within the next 30 days, it added "there can be no assurance" it "will be filed at such time."

At the time, the company said it was reviewing several aspects of its company, including its cash management, real estate portfolio for property available and possible layoffs.

History of Tupperware

According to the company's website, Tupperware Brands was founded in 1946 and is a "global consumer products" company that designs "innovate, functional and environmentally responsible" products.

The company's first products were debuted by chemist Earl S. Tupper in Massachusetts in the early 1940s after he had a "spark of inspiration" while creating molds at a plastics factory shortly after the Great Depression.

Shortly thereafter, Brownie Wise held the first at-home Tupperware party, leading to her being named the company's Vice President of Marketing in the 1950s.

Contributing: Jordan Mendoza, USA TODAY

Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at [email protected].