CALL IT A COMEBACK: Tupperware a step closer to coming out of bankruptcy as new owners to take on $63.8 million debt and revamp iconic brand

According to The Sun, Tupperware is poised for a resurgence after filing for bankruptcy in September. The iconic homeware and container brand has agreed to be acquired by a group of lenders rather than proceed with a scheduled asset auction.

Sale Agreement and Debt Relief

According to a press release on Tuesday, the lenders—Alden Global Capital and Stonehill Capital Management—plan to purchase Tupperware for $23.5 million and relieve the company of $63.8 million in debt in exchange for ownership. This information was revealed in court documents obtained by The U.S. Sun.

A hearing for the proposed sale is set to take place on October 29 in bankruptcy court for the District of Delaware. If the deal receives court approval, it is expected to be finalized by early November.

Cancellation of Asset Auction

The previously scheduled auction for Tupperware’s assets has been canceled due to the proposed transaction with Alden Global Capital and Stonehill Capital Management. Under the terms of the deal, the lenders intend to reintroduce Tupperware as “The New Tupperware Company” and adopt a “start-up mentality” throughout several phases of the transition.

Ownership and Market Focus

The lender group will gain ownership of all intellectual property necessary to create and market Tupperware products. They will also take control of Tupperware’s operating assets and transition the company from public to privately held status. While maintaining a focus on markets in the United States, Canada, and Mexico, the lenders plan to expand into five new regions: Brazil, China, South Korea, India, and Malaysia.

Future Strategy

With the addition of these international markets, other regions may see reduced focus, as reported by Retail Dive. The New Tupperware Company will continue to sell its products through various e-commerce platforms, independent consultants, and retail partners.

Current CEO Laurie Ann Goldman expressed optimism about the deal, noting that the lenders share a unified vision for the brand’s future.

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“Tupperware is recognized as the inventor of the party-selling model and made no-leak food conservation products popular,” Goldman stated. She highlighted the company’s new digital-first, technology-led, and asset-light strategy, emphasizing that they have made significant progress and are excited to partner with forward-thinking investors.

Challenges and Recent History

Founded in 1946 by Earl Tupper, Tupperware has experienced significant growth over the decades. However, it has faced challenges in adapting to the evolving e-commerce landscape. The company narrowly avoided bankruptcy in spring 2023 by negotiating a deal with creditors to reduce interest payments on its substantial debt.

At the time of its Chapter 11 filing last month, Tupperware’s outstanding debt amounted to a staggering $811.8 million. Earlier this year, the company also closed its only manufacturing plant in the United States, resulting in the layoffs of 148 employees, according to a Worker Adjustment and Retraining Act filing.

Tupperware joins the ranks of several major companies that have filed for bankruptcy this year, including Big Lots, Ted Baker, and LL Flooring.