
The American gigant selling the well-known wide plastic containers and cans for storing food, has for years struggled with serious financial and organizational problems. Now announces the closure of its factories in two other European countries.
Tupperware has decided to close its factories in Belgium and Portugal, which means loss of job for hundreds of workers – reports retaildetail.eu.
Tupperware is slowly withdrawing from Europe. Subsequent closures of factories
At Belgian factory Tupperware in Aalst, far from Brussels, jobs will lose 270 people. Although the disaster has not been officially announced yet, the future of the plant appears to be determined. At the end of last year Tupperware was taken over by American investment funds, which are using borrowed funds, to increase their profits. As a result of their decisions the number of countries in which the company operated, was drastically reduced
– from 67 to just 8. This means a almost complete withdrawal of Tupperware from the market in Europe.
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Sent employees to suppliers after what declared bankruptcy. Two sales of material
The closing of the factory in Portugal, where about 200 people worked, is the next step in this restructuring. Tupperware already had been closing its European plants in France and Greece.
The decision to close the Belgian factory startled many, because the plant still was profitable – in the last year recorded profits of 677 thousand. euro with turnover of 40 million euro. Belgian management has asked lawyers to take legal steps against American directors, accusing they of “evasion of responsibility.” Official announcement of bankruptcy is critical for employees, because it directly affects the amount of their rights.
Tupperware winds. Customers will prefer a cheaper alternative of worse quality
After the restructuring is completed, Tupperware will operate only on eight markets, which will happen.means, that thousands of Belgian consultants, who have been till selling brand products, have lost their source of income.
Although theoretically in the future it is possible to grant a new European license, production will no longer happen locally. The Belgian plant, known for producing high quality vessels and containers, was the symbol of the company’s long heritage in Europe.
Tupperware is struggling with declining interest in its products among consumers. In the era of increasing competition from the side of cheaperreplacementsandchangingtrendsinenvironment, sellingtraditionalplasticcontainershasbecomelessprofitable.
ThedecisiontoclosetheEuropeanplantsisfurtherevidenceofthedifficultfinancial situationof thebrand.Tupperware,at one timesynonymouswithqualityandinnovationinthekitchen,mustnowredefineitsstrategy.
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