The future of Tupperware Brands, best known for its plastic jars, is highly uncertain. “There is substantial doubt whether the company will be able to continue to operate,” said the kitchen products producer itself when publishing its quarterly results. The stock loses more than 40 percent on the New York Stock Exchange. Tupperware has a branch in Aalst and work was put down there in response to the news.
Tupperware was still one of the winners during the corona pandemic, as more people ate at home and so sales of kitchen supplies such as cling pots and cooking sets peaked. Efforts to replace the familiar Tupperware parties at people’s homes with online gatherings paid off.
But in the meantime, the tide has completely turned. Turnover in the third quarter amounted to 302.8 million dollars (converted 306.7 million euros), a fifth less than a year earlier. Continuing operations were also loss-making.
volatile income
The company says its volatile earnings and tightening covenants with the banks “raise substantial doubts about its ability to continue to operate,” Tupperware said. It continues to negotiate a solution with the banks, but “it is not certain that those efforts will be successful”.
Tupperware had $103 million in cash at the end of the quarter, while debt is over $700 million.
Strike in Aalst
In the Aalst branch, work was briefly put down after the news became known. The approximately 260 employees were very worried, our editors confirmed, because of the difficult economic times. Those who were not at work descended on the factory. The local manager also interrupted his holiday and came to Aalst. After a conversation with the Aalst management, where the most pressing questions from the staff members were answered, everyone went back to work.
From trade unions, it can be heard that the situation of Tupperware in Europe is significantly less bad than that in the US. “There is some economic unemployment in Aalst, but there have been no negative reports about the future yet,” it sounds. “The expectation is that sales will be slow for a while, but will eventually increase again.”