A U.S. bankruptcy judge has given the green light for the sale of Tupperware Brands, allowing the iconic food storage company to move forward with plans to exit Chapter 11 protection. The sale, approved in Delaware, is still subject to closing conditions. Under the terms of the deal, a group of lenders will acquire Tupperware's brand name and various operating assets for $23.5 million in cash and over $63 million in debt relief.
Tupperware, which agreed to the lender takeover last week, is set to operate as The New Tupperware Co. once the deal is finalized. The company plans to continue offering its products through online channels and its network of independent sales consultants, with a focus on revitalizing the brand with a start-up mentality.
Originally known for revolutionizing food storage with its airtight lid seal post-World War II, Tupperware saw significant growth through direct sales, particularly through its famous 'Tupperware parties.' However, in recent years, the company faced challenges due to an outdated business model and increased competition in the market.
Despite a temporary boost in sales during the COVID-19 pandemic, Tupperware struggled to keep up with changing consumer preferences, leading to financial difficulties. The company filed for bankruptcy last month, citing over $1.2 billion in debts and $679.5 million in assets.
The sale agreement, hailed as a positive outcome by Tupperware's legal representative, aims to preserve the company's business, customer relationships, and jobs. The purchasing lender group, including Stonehill Capital Management and Alden Global Capital, plans to take Tupperware private and focus on key markets such as the U.S., Canada, Mexico, Brazil, China, South Korea, India, and Malaysia.
While the sale marks a significant step towards Tupperware's revitalization, there are still closing conditions that need to be met, including resolving an issue with a Swiss entity. The company looks forward to a new chapter as it seeks to regain its position in the food storage industry.
