Tupperware plans to file for bankruptcy: Bloomberg News

The company is struggling with more than $700 million in debt and ongoing liquidity challenges.

Tupperware Brands is reportedly preparing to file for bankruptcy as early as this week, according to Bloomberg News, citing sources familiar with the situation.

Following the news, the home-goods brand’s shares fell by 15.8% to 43 cents in after-hours trading, closing down by 57%.

Tupperware is preparing to seek court protection after breaching the terms of its debt and bringing in legal and financial advisers, Bloomberg News reported on Monday. The bankruptcy preparations come after extended negotiations with its lenders regarding the management of over $700 million in debt, according to the report.

The company was founded in 1946 by chemist Earl Tupper. In March, Tupperware warned of uncertainty about its ability to continue operations, citing a liquidity crisis.

By June, the company announced plans to close its U.S. factory and lay off 150 employees. Last year, Tupperware replaced CEO Miguel Fernandez and several board members, appointing Laurie Ann Goldman as the new chief executive officer.

For 80 years, the company has largely depended on direct sales through a network of vendors to sustain its operations.