Tupperware Brands Corp. is sending people to the unemployment line just weeks after the company sought bankruptcy court protection and then struck a deal to sell itself to lenders.
The plastics homewares company is closing the firm's Orlando, Fla., headquarters, a move that will impact 145 workers, according to a letter sent to Orlando Mayor Buddy Dyer.
Tupperware indicated the employees either work or report to the Orlando location, and some of the impacted employees will receive job offers from the company's new owner.
"A purchaser is expected to enter into an agreement to purchase certain assets of the Company. It is expected that such purchasing entity will be extending offers of employment to certain of the company's employees, but details relating to such offers are not known at this time," the letter states.
Tupperware sought protection under Chapter 11 of the U.S. Bankruptcy Code on Sept. 17, a move designed to shield itself from debt obligations while the company reorganized. But the firm shifted strategy soon after.
An Oct. 22 announcement that lenders agreed to purchase the company came after years of uncertainty for the company, which had had labored under the weight of a heavy debt load. Tupperware's reliance on an outdated sales model for the United States, the home party, also caused financial problems for the firm. Tupperware had started to sell products through other methods, such as retail locations and Amazon, but those moves were too late to save it from bankruptcy court.
A Tupperware official who wrote the letter revealing the Orlando layoffs could not be immediately reached for comment.
"For most affected employees, these layoffs will be effective on Dec. 31, 2024, but certain employees unknown at this time may be needed for a longer period to provide transition or wind down services. None of the affected employees have bumping rights and none are represented by a union," the letter states.
Tupperware, in announcing the new ownership plan in October, said the company "will be rebuilt with a start-up mentality using an agile methodology in dynamic phases. The initial focus will be on global core markets including the United States, Canada, Mexico, Brazil, China, [South] Korea, India and Malaysia, and the new company intends to follow on with European and additional Asian markets."
