TUPPERWARE BRANDS CORPORATION (NYSE:TUP) Files An 8-K Other EventsItem 8.01. Other Events.
Tupperware Brands Corporation (the "Company" or the "Registrant") announced today that, after being unable to find a buyer for its Beauticontrol unit, it will wind down that business over approximately the next 60 to 90 days. Beauticontrol’s full year 2016 sales were $46.4 million and its operating loss was $9.4 million, of which $25.0 million and $5.3 million, respectively, was in the first half of the year. The unit’s first half 2017 sales were $18.6 million and its operating loss was $2.6 million. The Company estimates that the net cost of executing the wind down will be $20.0 million, of which about half will be in cash. A portion of the net cost will be recorded in second quarter 2017 results. The cost of the wind down includes payroll during the 60-day notice period under the Worker Adjustment and Retraining Notification Act (WARN Act) and severance, obligations under the lease of the unit’s manufacturing facility, the settlement of other operating liabilities and the write off of net assets not expected to be able to be converted to cash. The results of Beauticontrol from August 2017 forward and the direct costs of the wind down will be considered an “item” in the non-GAAP reporting in the Company’s earnings releases.
About TUPPERWARE BRANDS CORPORATION (NYSE:TUP)
Tupperware Brands Corporation is engaged in the manufacture and sale of Tupperware products, and cosmetics and personal care products. The Company’s segments are Europe, Asia Pacific, Tupperware North America, Beauty North America and South America. The Europe, Asia Pacific and Tupperware North America segments include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand. The Europe segment includes Avroy Shlain, which sells beauty and personal care products. The Asia Pacific segment sells beauty and personal care products under the NaturCare, Nutrimetics and Fuller brands. The Beauty North America segment offers cosmetics, skin care and personal care products marketed under the BeautiControl, Armand Dupree and Fuller Cosmetics brands. The South America segment offers housewares and beauty products under the Armand Dupree, Fuller, Nuvo and Tupperware brands.
