According to The Sun, Tupperware is gearing up for a second life following its bankruptcy filing in September. The iconic homeware and container brand has reached an agreement to sell itself to a group of lenders rather than proceeding with a scheduled asset auction.
Sale Agreement and Financial Relief
The lenders involved in the deal include Alden Global Capital and Stonehill Capital Management, according to a press release issued on Tuesday. While the sale is not yet official, the lenders plan to acquire Tupperware for $23.5 million and will relieve the company of $63.8 million in debt in exchange for ownership, as outlined in court documents obtained by The U.S. Sun.
A hearing for the sale is scheduled for October 29 in the bankruptcy court for the District of Delaware. If the court approves the deal, it is expected to be finalized by early November.
Cancellation of Asset Auction
An auction for Tupperware’s assets, which was previously set, has been canceled due to the proposed transaction with Alden Global Capital and Stonehill Capital Management. The lender group plans to reintroduce Tupperware as “The New Tupperware Company” through multiple phases, adopting a “start-up mentality,” as stated in the release.
Focus on Innovation and Market Expansion
Under the proposed deal, the lenders will own all intellectual property necessary for creating and marketing Tupperware products. They will also gain control of Tupperware’s operating assets, transitioning the company to a privately held entity.
While the primary focus will remain on the U.S., Canada, and Mexico markets, the lenders aim to expand into five new regions: Brazil, China, South Korea, India, and Malaysia. However, this expansion will come at the cost of pulling back from other international markets, according to Retail Dive.
The New Tupperware Company plans to continue selling products through various e-commerce platforms, independent consultants, and retail partners.
Leadership Perspective
Laurie Ann Goldman, Tupperware’s current CEO, expressed optimism about the future of the brand, highlighting that the lenders share a vision aligned with the company’s goals. “Tupperware is considered the inventor of the party-selling model and made no-leak food conservation products famous,” Goldman stated regarding the proposed sale.
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She added, “Over the last year, we created a new strategy and operating approach that is digital-first, technology-led, and asset-light, while preserving a global footprint for the company. We’ve made tremendous progress and are delighted this group of forward-thinking investors will partner with us to grow.”
History of Challenges
Founded in 1946 by Earl Tupper, the company has seen tremendous growth but has recently struggled to adapt to the evolving e-commerce landscape. Tupperware nearly faced bankruptcy in spring 2023 but secured a deal with creditors to reduce interest payments on its outstanding debt. As of last month’s Chapter 11 filing, Tupperware’s total outstanding debt was approximately $811.8 million.
Additionally, the company closed its only U.S. plant earlier this year, resulting in the layoff of 148 employees, as reported in a Worker Adjustment and Retraining Act filing.
Tupperware joins several other major companies that have filed for bankruptcy this year, including Big Lots, Ted Baker, and LL Flooring.
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