Tupperware's American management has agreed to the bankruptcy of the company’s Belgian sites. The unions that represent staff at Tupperware in Belgium learned on Monday that company will be filing for the bankruptcy of its Belgian operation. A trustee will be appointed soon to liquidate Tupperware Belgium’s assets. The money raised will be used to finance redundancy payments for the company’s 270 workers.
Tupperware’s American bosses accept bankruptcy of the company's Belgian sites
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Previously, Tupperware's US headquarters had made no comment about the company’s Belgian sites. At the end of last year, the licences to manufacture and sell Tupperware products were withdrawn from the company’s Aalst (East Flanders) factory. This meant that the factory could no longer operate. However, management at Tupperware Belgium was given no further information by Tupperware in the US about the company’s plans for Aalst.
At a recent Works Council meeting Tupperware’s Belgian management suggested that the company should declare itself bankrupt. However, it was not clear how this could be done without the agreement of the parent company in the United States.
The parent company has since given the go-ahead for the Belgian sites to be declared bankrupt. Tupperware has a factory and a product development site located in the East Flemish city of Aalst. The unions will now negotiate redundancy payments and hope for a swift and fair settlement for staff.
“It's reassuring because we won't have to force a bankruptcy”.
Chiara Van Geert, of the liberal trade union ACLVB told journalists that “The Americans are finally taking responsibility, even if it is somewhat belatedly. It's reassuring that we won't have to force a bankruptcy.”
Last year the position of the US-owned plastic container manufacturer became untenable as the company had amassed debts totalling 700 million US dollars. The brand was taken over by its creditors that included Stonehill Capital Management Partners and Alden Global Capital. A new company, ‘The New Tupperware Company’ was set up. It announced that it intends to concentrate its activities in a number key countries that doesn’t include Belgium.