Tupperware Brands Corp. will explore cost-saving efforts and seek additional financing after warning of a possible collapse due to its ongoing financial difficulties.

While the company is known to have innovated food storage in the United States with its plastic containers in the mid-20th century, the company’s current financial difficulties, including a likely violation of its credit facility covenants and higher interest costs, have resulted in substantial doubt about its ability to survive.

Tupperware was introduced in the United States in 1946 and quickly became a household staple. But in recent years, the company has experienced a major decline in revenue.

The company experienced a 50% decline in share prices after it filed a current report to the U.S. Securities and Exchange Commission on April 7.

“The Company currently forecasts that it may not have adequate liquidity in the near term,” according to the filing. 

The brand’s press release revealed that Tupperware is at risk of being delisted from the New York Stock Exchange due to its failure to file its annual report on time. 

The company also expressed its intention to file its annual report within the next month, but it acknowledged that there is no guarantee that it will meet the deadline.

To address these concerns, Tupperware reported bringing in engaged financial advisers to secure supplemental financing. It will also explore right-sizing efforts, monetization of fixed assets, cash management and marketing optimization. 

The company is also reviewing its real estate portfolio for property available for potential dispositions or sale-leaseback transactions to preserve or deliver additional liquidity.

Tupperware’s market downturn also pertains to its inability to remain competitive in the face of  lower-cost alternatives.

Additionally, its relevance in the U.S. consumer market declined due to its competitors. For instance, Clorox Co.’s GladWare offers a pack of three 8-cup plastic containers with lids for $8.99, while Tupperware’s single “Heritage Collection” bowl and lid of the same size costs $10.99.

Neil Saunders, a retail analyst and managing director at GlobalData Retail, told CNN that several issues are hurting Tupperware, including a “sharp decline in the number of sellers, a consumer pullback on home products, and a brand that still does not fully connect with younger consumers.”

Tupperware came up with strategies to stay afloat during the COVID-19 pandemic, including shifting sales to online channels and offering promotions. 

The company further implemented newer strategies to appeal to younger consumers. In an effort to keep up with evolving consumer preferences and market trends, Tupperware took a modernized approach by increasing its focus on digital and social selling.

Tupperware collaborated with Target Corp. in October 2022. Tupperware CEO Miguel Fernandez cited the company’s reinvention plans, aiming “to grow the business through multiple retail channels and get its products in front of younger consumers who’ve never heard of Tupperware parties.”

Despite efforts to modernize its business model, Tupperware’s future remains uncertain.Fernandez acknowledged challenges but maintained his optimism, saying “we have a solid plan in place to strengthen our business for long-term success.”