From Bankruptcy to Brilliance: Tupperware’s Path Forward with $63.8 Million Debt Plan
According to The Sun, Tupperware is poised for a resurgence after filing for bankruptcy in September. The iconic homeware and container brand has reached an agreement to sell itself to a group of lenders instead of proceeding with a scheduled asset auction.
Sale Agreement with Lenders
According to a press release on Tuesday, the lenders involved in the acquisition include Alden Global Capital and Stonehill Capital Management. Although the sale is not yet finalized, the lenders plan to acquire Tupperware for $23.5 million and forgive $63.8 million in debt in exchange for ownership, as detailed in court documents obtained by The U.S. Sun.
The sale hearing is scheduled for October 29 in the bankruptcy court for the District of Delaware. If approved, the transaction is expected to close by early November.
Cancellation of Asset Auction
The planned auction for Tupperware’s assets has been canceled due to the proposed transaction between the company and the lender group.
A New Beginning: The New Tupperware Company
The lenders aim to reintroduce Tupperware as “The New Tupperware Company” through several phases, adopting a “start-up mentality.” They will acquire all intellectual property needed to create and market Tupperware products and take control of the company’s operating assets, transitioning it from a public to a privately held entity.
The focus will remain on the U.S., Canada, and Mexico markets, while also expanding into five new regions: Brazil, China, South Korea, India, and Malaysia. Retail Dive reports that this expansion will lead to a pullback from other international markets.
E-commerce and Sales Strategy
The New Tupperware Company plans to continue selling products through various e-commerce platforms, independent consultants, and retail partners. Current CEO Laurie Ann Goldman expressed optimism about the future, noting that the lenders share a vision for revitalizing the brand.
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“Tupperware is considered the inventor of the party-selling model and made no-leak food conservation products famous,” Goldman stated regarding the proposed sale. She emphasized the company’s new strategy and operating approach, which focuses on being digital-first, technology-led, and asset-light while maintaining a global footprint.
Tupperware’s History and Recent Struggles
Founded in 1946 by Earl Tupper, Tupperware has experienced significant growth over the decades. However, in recent years, it has struggled to adapt to the evolving e-commerce landscape. The company narrowly avoided bankruptcy in the spring of 2023 by securing a deal with creditors that reduced interest payments on its outstanding debt.
At the time of its Chapter 11 filing last month, Tupperware’s outstanding debt stood at a staggering $811.8 million. Earlier this year, the company also closed its only manufacturing plant in the United States, resulting in the layoff of 148 employees, as reported by a Worker Adjustment and Retraining Act filing.
Tupperware is one of several major companies to file for bankruptcy this year, joining the ranks of Big Lots, Ted Baker, and LL Flooring.
