Tupperware Shuts Down South Africa Branch, Employees Face Job Losses

Tupperware has announced that it will be closing its South African operations by the end of December 2024, resulting in employee layoffs. This move follows the company’s bankruptcy filing in September due to declining sales and mounting financial difficulties.

Bankruptcy and Asset Purchase

In an effort to help the company recover, Party Products, formed by Tupperware’s lenders, purchased certain assets of the brand. Party Products will now focus on managing Tupperware’s operations in countries like the US, Canada, Mexico, Brazil, China, Korea, India, and Malaysia.

Despite this, Tupperware South Africa will not be part of the new business structure. Justin Korte, Tupperware’s head of commercial, explained that the license agreement for the South African branch would not be included in the purchase deal. As a result, Tupperware South Africa will not receive the necessary equipment to continue manufacturing or produce future product campaigns.

Limited Stock and Severance Packages

Korte highlighted that, due to the lack of equipment and resources, there would only be a limited stock of products available for sale to distributors. In light of these challenges, the company has decided to offer Voluntary Severance Packages (VSP) to its employees. All staff members who accept these packages will have their service terminated by December 31, 2024. Those who do not accept the VSP will be laid off starting January 1, 2025.

Korte added that the board and management are awaiting final instructions from the company’s shareholders and are seeking legal advice on how to manage the situation moving forward.

Follow Joburg ETC on Facebook, Twitter and Instagram

For more News in Johannesburg, visit joburgetc.com