By Savyata Mishra and Dietrich Knauth

(Reuters) -Tupperware Brands filed for bankruptcy protection in Delaware late on Tuesday, succumbing to mounting losses due to poor demand for its once popular colorful food storage containers.

Its popularity exploded in the 1950s as women of the post-war generation held "Tupperware parties" at their homes to sell the containers as they sought empowerment and independence.

However, its sales slumped in recent years as the company struggled to place more of its products in retail stores and online sales platforms. Tupperware has historically relied on independent sales representatives to move its products, but that strategy has failed to reach modern consumers, according to the company.

"Nearly everyone now knows what Tupperware is, but fewer people know where to find it," Tupperware Chief Restructuring Officer Brian Fox wrote in a court filing in the U.S. Bankruptcy Court for the District of Delaware. I

Tupperware last month raised doubts about its ability to remain in business after flagging bankruptcy risk several times due to liquidity constraints.

The company has $812 million in debt, much of which was purchased by distressed debt investors at a deep discount in July, according to court filings. Those new lenders had sought to use their debt position to seize Tupperware assets including its intellectual property such as its brand, pushing to the company to seek bankruptcy protection, Tupperware said.

The company intends to continue operations and conduct a 30-day bidding process to find a buyer for the entire company.

"Even with a recently restructured balance sheet and a temporary financial boost, Tupperware's high leverage, declining sales and shrinking profit margins were too much to overcome," said James Gellert, executive chairman at financial analytics firm RapidRatings.

The company has been trying to turn its business around for years after reporting several quarters of falling sales.

A post-pandemic jump in the costs of labor, freight and raw materials such as plastic resin also pressured its business.

The company's stock saw wild swings in 2023 amid "meme stocks" rallies, in which retail investors coordinate on social media and focus their bets on struggling companies with high short interest.

Tupperware has $500 million to $1 billion in estimated assets and $1 billion to $10 billion in estimated liabilities, according to bankruptcy filings. It listed the number of creditors to be between 50,001 and 100,000.

The company had in 2023 finalized an agreement with its lenders to restructure its debt obligations and signed investment bank Moelis & Co to help explore strategic options.