Tupperware shares plunge after the warning that it could go out of business

New York (CNN) Tupperware shares fell nearly 40% in early trading on Monday after a gloomy warning that the future looked unclear.

In a regulatory filing late on Friday, the container maker said there is “substantial doubt about the company’s ability to continue as a going concern” and that it is working with financial advisers to find financing to stay afloat.

Tupperware said it won’t have enough cash to fund operations if it doesn̵[ads1]7;t secure additional cash. The company said it is investigating potential layoffs and it is evaluating its real estate portfolio for potential money-saving efforts.

The New York Stock Exchange also warned that Tupperware’s shares are at risk of being delisted for failing to file a required annual report.

“Tupperware has embarked on a journey to turn around our business and today marks a critical step in addressing our capital and liquidity position,” CEO Miguel Fernandez said in a press release. “The company is doing everything in its power to mitigate the effects of recent events, and we are taking immediate steps to seek additional funding and address our financial position.”

The 77-year-old business has struggled in recent years to maintain its relevance against rivals. It has tried to shed its stable image and attract younger customers with newer and trendier products. It also struck a deal with Target last year to sell its products.

Several issues are hurting Tupperware, including a “sharp decline in sales, a consumer pullback on home products and a brand that’s still not quite connecting with younger consumers,” according to Neil Saunders, retail analyst and CEO of GlobalData Retail.

Saunders said Tupperware is in a “precarious position” financially because it is struggling to grow sales and because it is “actively light, it doesn’t have “a lot of capacity to raise money.”

“The company used to be a hotbed of innovation with problem-solving kitchen gadgets, but it’s really lost its edge,” he said.

Tupperware (TUP) said the entry into Target is part of the brand’s reinvention, which includes plans to expand its business through multiple retail channels and get its products in front of younger consumers who have never even heard of Tupperware parties.

But it hasn’t worked so far: the shares are down 90% in the past year. It also issued another “going concern” warning in November last year.