Household name Tupperware Brands is preparing to file for bankruptcy and could do so as soon as this week, according to sources with knowledge of the plans, quoted by Bloomberg.

The brand, known for their iconic food storage containers, is set to enter court protection after it breached the terms of its debt repayment and has enlisted legal and financial advisors, the sources said.

This follows negotiations held between Tupperware and its lenders over how to manage more than US$700 million (S$907 million) in debt.

The plans are not final and could change.

A representative for Tupperware declined to comment, Bloomberg reported.

Recent struggles led to decision

Tupperware products were first introduced to the public in 1946, after founder Earl Tupper invented their flexible airtight seal.

It exploded in popularity in the U.S. through home parties hosted by sellers, before attaining global fame.

However, the 77-year-old homeware brand has been struggling in more recent times, with demand for its products waning following the Covid-19 pandemic.

In 2022, it reported a US$28.4 million (S$36.8 million) loss from continuing operations as net sales fell 18 per cent, The Straits Times reported.

In April 2023, Tupperware shares plummeted nearly 50 per cent after the brand published a filing to address doubts that it was going out of business.

In 2023, the brand also replaced its chief executive officer Miguel Fernandez and several board members in a bid to turn the business around, Reuters reported.

However, in June, Tupperware announced its plans to shutter its only factory in the United States and lay off almost 150 employees, according to The New York Post.

Top image from Tupperware Singapore / Facebook