Tupperware Brands Corporation is preparing for a bankruptcy filing which will take place as soon as this week, according to Bloomberg.

The kitchenware brand plans to enter court protection after it breached the terms of its debt and enlisted legal and financial advisers, the site quoted people with knowledge of the matter.

The bankruptcy preparations follow protracted negotiations between the company and its lenders over how to manage more than $700 million in debt, according to the report.

The company’s shares were down 57 per cent at the end of Monday’s trading amid the news.

Founded in 1946 by Earl Tupper, Tupperware is known for its problem-solving kitchen and home products, which are distributed to more than 80 countries.

The company witnessed a surge in sales during the Covid-19 pandemic but lost its momentum as the world reopened.

In an announcement released in March, Tupperware said it was not certain its business could continue as a going concern, citing a liquidity problem. The company received a delist warning from the NYSE in the following month after delaying its financial report for FY23.

Laurie Ann Goldman was appointed as the company’s president and CEO last year, succeeding Miguel Fernandez.