At the risk of putting a major damper on your Thanksgiving spirit, I'm here with news on the seemingly devastating state of things over at Campbell's Soup. According to the New York Times, not only is the company billions of dollars in debt, but it's also reportedly refusing help from a hedge fund hoping to overtake majority share in Campbell's to turn things around.
Delish: Eat Like Every Day’s the Weekend
Last quarter alone, "earnings were down 50 percent...soup sales have been eroding and the company’s chief executive, Denise Morrison, stepped down under pressure in May," the Times explains. Attempts at salvaging things with new acquisitions left the company "billions in debt."
That and the fact that generations of descendants of John T. Dorrance, the man behind the condensed soup formula, still depend on the money they receive from the company's earnings to live their "comfortable lives" doesn't help. Many of the Dorrance descendants are worth billions because of the continued Campbell's kickbacks. They are reportedly not willing to make changes to the company that conflict with any part of the Campbell tradition, whether it be the soup itself or the money they see from it. They also own about 40 percent of the company combined.
The paper goes on to explain Daniel Loeb, who owns NYC's Third Point hedge fund, is looking to acquire a majority share in the company...or at least to restructure it completely by putting several of his people on the board. He not only has the billions to do so, but he also believes his company is right for the job. Currently, he owns about seven percent of Campbell's stock through the hedge fund.
Part of what he envisions Third Point doing is modernizing Campbell's iconic cans, as part of the problem is that, in 2018, people aren't as into pre-packaged, super-processed canned meals. What he would change them to, though, is unclear. An offshoot of Third Point's website is currently dedicated to "[Refreshing] Campbell's."
While most Dorrance family members are digging in their heels to fight against a Third Point takeover, Loeb has convinced at least one Campbell's family member to side with him on November 29, when Campbell shareholders will vote on whether or not to give Third Point five seats on their board.
Dorrance descendent and former Campbell's board member told the Times: “My cousins were complacent and ignored the truth. It’s very much a shame."
