TUPPERWARE is getting a second life after filing for bankruptcy in September.
The homeware and container brand has agreed to sell itself to a group of lenders instead of a scheduled asset auction.
Tupperware is set to come back strong after its bankruptcy filing[/caption]
The company faced considerable debt and revenue struggles in recent years (stock image)[/caption]
Those lenders include Alden Global Capital and Stonehill Capital Management, per a Tuesday press release.
While the sale isn’t official yet, the lenders plan to buy Tupperware for $23.5 million and relieve $63.8 million in debt in exchange for ownership, according to court documents obtained by The U.S. Sun.
The sale hearing will take place on October 29 in a bankruptcy court for the District of Delaware, and if the deal is approved, it should be finalized by early November.
An auction for Tupperware’s assets was previously set but is now canceled, given the proposed transaction between the iconic company, Alden Global Capital, and Stonehill Capital Management.
The lender group would re-introduce Tupperware as The New Tupperware Company throughout several phases and would take on a “start-up mentality,” according to Tuesday’s release.
They’d also own “all intellectual property needed to create and market” Tupperware and its products through the proposed deal.
The owners also would take control of Tupperware’s operating assets and transition it to a privately held company instead of a public one.
Focus will continue to be placed on the United States, Canada, and Mexico markets, but the lenders intend to put emphasis on five new additions, including Brazil, China, South Korea, India, and Malaysia.
LOOKING AHEAD
With the new additions, other international markets will be pulled back, per Retail Dive.
The New Tupperware Company will also continue to sell products through various e-commerce sites, independent consultants, and retail partners.
Tupperware’s current CEO, Laurie Ann Goldman, noted that the lenders had an aligned vision for the future of the brand.
“Tupperware is considered the inventor of the party-selling model and made no-leak food conservation products famous,” Ann said in a statement about the proposed sale.
“Over the last year, we created a new strategy and operating approach that is digital-first, technology-led and asset-light, and preserved a global footprint for the company.”
“We’ve made tremendous progress and are delighted this group of forward-thinking investors share our vision and will partner with us to grow,” she continued.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
CREDIT CHAOS
Tupperware’s longstanding history began in 1946 after being founded by Earl Tupper.
It has gone through astronomical growth since then but, in recent years, found itself struggling with an inability to adapt to the e-commerce landscape.
The company nearly went bankrupt in the spring of 2023 before getting another deal with creditors that reduced interest payments on its outstanding debt, per ABC affiliate KFSN.
At the time of the Chapter 11 filing last month, that outstanding debt was a whopping $811.8 million.
Tupperware also closed its only plant in the United States earlier this year, laying off 148 employees, per a Worker Adjustment and Retraining Act filing.
It’s also one of several major companies to file for bankruptcy this year, including Big Lots, Ted Baker, and LL Flooring.
