New York/London (CNN) -- Tupperware Brands Corporation, whose food containers have been a mainstay in American kitchens, has filed for bankruptcy.
"Over the last several years, the company's financial position has been severely impacted by the challenging macroeconomic environment," Laurie Ann Goldman, Tupperware president and CEO, said in a statement late Tuesday.
"As a result, we explored numerous strategic options and determined this is the best path forward. 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."
Tupperware rang the alarm bells in April 2023, when it disclosed in a regulatory filing that it could go out of business. The company said at the time that, if it didn't find more cash, it would no longer be able to fund its operations.
Tupperware found that lifeline four months later, when it reached a deal with its creditors to reduce its interest payment obligations by $150 million. It also secured $21 million in new financing, an extension on the deadline for paying back about $348 million in debt and a reduction in the amount of debt it owed by around $55 million.
But the company's finances still declined following the deal.
Tupperware shuttered its only US plant this year in South Carolina, resulting in 148 layoffs, according to a Worker Adjustment and Retraining Notification Act filing.
Even though the 78-year-old brand was once a household name, it became less popular with younger consumers.
Tupperware has historically only sold to consumers through so-called direct sales, most commonly at "Tupperware parties," similar to cosmetic company Avon's business model, and only began selling in Target in 2022.
Many businesses file for bankruptcy protection to wind down some operations, shed debt and cut costs. A common route, also chosen by Tupperware, is Chapter 11 bankruptcy, which allows the company to solve its financial problems by restructuring.
This is a developing story and will be updated.
The-CNN-Wire
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