Georgia conglomerate furloughs 5,000, takes $1.5 billion charge
Sandy Springs-based Newell Brands’ recent sales fell 25%, and it furloughed 5,000 workers as it dealt with ripple effects from the coronavirus pandemic, according to a company filing Friday.
The company, which markets product lines such as Rubbermaid, Sharpie, Yankee Candle and Graco, also reported a $1.5 billion impairment charge, acknowledging the reduced value of brands in its home/outdoor and appliances/cookware segments.
In an email to The Atlanta Journal-Constitution, a company spokesperson wrote that the charge is indirectly related to the pandemic: “Our view of future cash flows has been negatively impacted by the supply chain disruption, the retail store closures and the changes in consumer purchase patterns.”
Many of the recent furloughs involved the company’s Yankee Candle stores. A company spokesperson said 70 Georgia workers were among those furloughed.
Newell has experienced longer-term troubles beyond the virus and had been in the midst of acting on a turnaround plan. The company said it shut 44 underperforming Yankee Candle stores, beyond the temporary shutdown of its stores throughout North America as a result of the pandemic.
Newell’s share price had fallen 10% in Friday afternoon trading, a steeper drop than that of the overall market.
Among the conglomerate’s many other brands are Calphalon, Crock-Pot, Oster, Elmer’s, Paper Mate, Coleman, Marmot and First Alert.
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Matt Kempner is an award-winning journalist who seeks out intriguing twists about people and subjects beyond what the AJC might typically cover. A former columnist and editor, his past assignments have included business investigations, energy, the economy, entrepreneurs, big business, consumer spending, politics, government and the environment.
