Due to rising debts and a dip in sales, the company has engaged financial advisors to help "improve its capital structure and remediate its doubts regarding its ability to continue as a going concern", a statement said.
"The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate action to seek additional financing and address our financial position," commented Miguel Fernandez, president and chief executive officer of Tupperware Brands.
The BBC reports that the firm has been attempting to reposition itself to a younger audience but has failed to stop a slide in its sales.
Tupperware Brands Corporation said it has engaged financial advisors to assist in securing supplemental financing, and is engaging in discussions with potential investors or financing partners.
In addition, the company is reviewing its real estate portfolio for property available for potential dispositions or sale-leaseback transactions, and is exploring right-sizing efforts, monetisation of fixed assets, cash management, and marketing and channel optimisation, to preserve or deliver additional liquidity.
Created by chemist Earl Tupper in the 1940s, Tupperware was introduced in Southern Africa in 1964 and is available nationwide with more than 270,000 direct sales consultants forming part of the company.
Following news of the potential business collapse, IOL reports that Tupperware Southern Africa has issued a letter to reassure its local sales teams there it's business as usual for now.
Tupperware Southern Africa said in the letter that the annual report is required by law for any publicly traded company, since the company is listed on the New York Stock Exchange. It added that Tupperware disclosed that it is working with third-party financial advisers to review and improve the current capital structure.
"What this means is that we are doing everything we can to ensure our financial foundation is solid in order to continue moving forward with our business transformation," Tupperware Southern Africa said.
"Please note that this situation has no impact on how we conduct business with you today! In fact, we will continue to deliver new products entering our new product categories, to keep bringing you the durable, quality and innovative products that the Tupperware brand is known and loved for. We remain focused too, on continuing to deliver on the service and tools you expect in order to grow your Tupperware business," it said.
It added that the issues are primarily historical accounting issues the company is working through with additional outside advisers to support its global transformation and to shore up long-term financial structure.
"We encourage you to remain focused on building your teams and selling Tupperware products to help your customers reduce their food and single-use plastic waste," Tupperware Southern Africa said.
It advised local sellers to contact their regional sales managers if they had any further questions.
