Food storage company Tupperware has announced it will cease operations in SA and other markets including Australia by the end of of the year as part of the company’s broader liquidation and restructuring strategy.
The closure will result in job losses for employees and distributors, marking the end of Tupperware’s presence in these markets after the company entered into Chapter 11 bankruptcy earlier this year.
SA distributors have been informed that stores will be closed down on December 31. Employees were offered voluntary severance packages with the remainder expected to be laid off in January, according to media reports.
Similarly, Tupperware’s Australian operations will close just before Christmas, impacting hundreds of staff.
A recent Form 8-K filing from Tupperware has revealed that the brand’s new owners will concentrate on eight core markets, excluding SA and Australia.
The company said it would shift its focus to key regions, including the US, Canada, Mexico, Brazil, China, Korea, India and Malaysia. Under the leadership of president and CEO Laurie Ann Goldman, appointed in October 2023, Tupperware is set to transform its business model with the revamped strategy focusing on a digital-first approach, leveraging technology and adopting an asset-light structure to drive growth and efficiency.
"Winding down parts of the company will be a difficult but necessary decision to protect the future of the Tupperware brand. I want to thank all the wonderful people that will always be a part of the Tupperware family. Change and disruption are challenging, but at times, needed to move forward,” Goldman said.
Despite the closures, Tupperware said customers would still be able to purchase Tupperware products through independent sales consultants, e-commerce platforms and retail partnerships.
“With its robust portfolio of award-winning, innovative products that consumers love and trust, the new company will continue to support entrepreneurship and a more sustainable lifestyle. Customers will be able to continue purchasing Tupperware products via independent Tupperware sales consultants, Tupperware ecommerce sites and retail partners in the global core markets,” it said.
After filing for bankruptcy, Tupperware entered into an asset purchase agreement with Wells Fargo Bank and a consortium of its lenders on November 22. Under the deal, Tupperware sold its core assets for approximately $69.3m (R1.2bn) and transferred certain liabilities. The US Bankruptcy Court for the District of Delaware approved the sale, which was finalised last week on November 27.
Tupperware’s struggles have also affected its stock performance. According to the Form 8-K filing, in October, the New York Stock Exchange delisted Tupperware’s common stock, which now trades on the OTC Expert Market under the symbol “TUPBQ”. In the filing, Tupperware warned that trading its shares during the restructuring was speculative, and investors could face significant losses.
“The corporation cautions that trading in its securities (including, without limitations, the corporation’s common stock) during the pendency of the Chapter 11 cases is highly speculative and poses substantial risks. Trading prices for the corporation’s securities may bear little or no relationship to the actual recovery, if any, by holders of the corporation’s securities in the Chapter 11 cases," it said.
“The corporation expects that holders of shares of the corporation’s common stock could experience a significant or complete loss on their investment, depending on the outcome of the Chapter 11 cases.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.