Tupperware has set up a business continuity plan in response to the COVID-19 pandemic, which is aimed to preserve the long-term financial health of the business. Measures include salary reductions, temporary furloughs, reorganization and the elimination of non-essential operating expenses and capital expenditures.
“During these uncertain times, the health and safety of our employees and sales force remains our top priority,” said Miguel Fernandez, president and CEO of Tupperware Brands. “Like many companies navigating this unprecedented environment, we must take prudent and disciplined steps to reduce expenses and maintain necessary financial flexibility and liquidity. Decisions that adversely impact our employees are never easy, and we are deeply appreciative of all of our employees for their commitment to our purpose and our independent sales force. We are confident that our current actions will better position the company to advance our turnaround, strengthen our financial position and accelerate our growth strategies once we emerge from this challenging time.”
In addition, the company recently drew down $225 million under its credit agreement on March 30, as previously announced. An amount of $175 million was drawn and the remaining amount of $50 million was drawn for customary working capital needs during the second quarter of 2020. The company expects to pay-down the draw prior to the end of the second quarter.
Tupperware Brands ended the 2019 fiscal year with $123 million of cash. Together with the liquidity available under its existing line of credit, and recent actions around operating expenses, working capital, real estate sales and capital expenditures, the company believes it will be able to fund near-term operations while working diligently towards long-term objectives.