Tupperware to close headquarters in Orlando, lay off 145 employees

Tupperware to close headquarters in Orlando, lay off 145 employees

Less than a week after reaching an agreement to sell itself to a lending group, Tupperware Brands told the state it will terminate operations at its Orlando headquarters and lay off 145 employees by the end of the year.

In a notice filed Nov. 5 with the Florida Department of Commerce, the company said it will permanently close its facility at 19401 S. Orange Blossom Trail with layoffs going into effect Dec. 31.

The notice stated that some employees may be needed for a longer period to “provide transition or wind down services” and none are represented by a union.

Tupperware, known for its plastic food storage containers, filed for Chapter 11 bankruptcy Sept. 17 amid growing struggles to revitalize its brand. At the time, it reported more than $1.2 billion in total debts and $679.5 million in total assets, according to the bankruptcy petition.

The group set to buy Tupperware includes Alden Global Capital — owner of the Orlando Sentinel’s parent company Tribune Publishing — and Stonehill Capital Management Partners. The group said last week it will acquire some assets of the company and is expected to possibly extend “offers of employment to certain of the company’s employees” but details were “not known at this time.”

Under the pending sale, which a U.S. bankruptcy judge approved, Tupperware will receive $23.5 million in cash and $63.5 million in debt relief. In exchange, the lending group will receive Tupperware’s intellectual property to “create and market Tupperware’s brand” in the future.

The move leaves the future of the iconic brand unclear at best.

The company has struggled for years to adopt a diverse sales strategy and remained slow to pivot to online retail, according to Tupperware chief restructuring officer Brian Fox.

“In recent years, however, the historical strengths of a widespread direct selling model began to turn into weaknesses,” Fox wrote in the company’s bankruptcy filing.

According to Tupperware, the company plans to rebrand itself as The New Tupperware Company under the new owners and shift to a “start-up mentality” while continuing to focus in core markets such as the United States, Canada, Mexico, Brazil, China, Korea, India and Malaysia.

At the time of its bankruptcy filing, Tupperware employed more than 5,450 people in 41 countries and partnered with over 465,000 consultants globally to sell products on a freelance basis in nearly 70 countries.

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