Tupperware has come to a preliminary agreement to sell its business, just a few weeks after the kitchenware brand entered bankruptcy proceedings.
The private sale will involve key lenders, including Alden Global Capital, as announced by the company on Tuesday.
The deal will bring Tupperware $23.5 million in cash along with over $63 million in debt relief in exchange for “all intellectual property” required for production and marketing, and operational assets both in the United States and internationally, the company stated.
This transaction is expected to finalize by the end of the month, subject to court approval and other standard closing requirements, Tupperware noted. Bankruptcy Judge Brendan Shannon indicated that, in light of the company’s “difficult and challenging circumstances,” this arrangement appears to be the most viable option, as reported by Reuters.
The sale details were revealed during a bankruptcy court session in Wilmington, Delaware, on Tuesday, according to the news agency.
“After facing years of challenges due to an over-leveraged balance sheet and an outdated business model, this agreement signals a new beginning for this iconic brand,” said Tupperware.
The dawn of a ‘new’ Tupperware
The arrangement between the Florida-headquartered firm and its lenders finds a balanced solution, allowing debt forgiveness to contribute to the purchase price while providing Tupperware with the necessary funds to settle other obligations, according to Reuters.
In a statement, Laurie Ann Goldman, Tupperware’s president and CEO, expressed excitement about the “tremendous growth” seen over the past year, emphasizing their joy at having investors who share their vision and are ready to collaborate for future expansion.
“Tupperware is renowned for pioneering the party-selling model and popularizing no-leak food storage solutions,” Goldman mentioned. “In the past year, we have developed a new strategy that’s digital-forward, technology-driven, and asset-light, while maintaining a global presence for the brand.”
The reimagined Tupperware will concentrate on key global markets such as the U.S., Canada, and Mexico, and will continue to foster entrepreneurship and advocate for a sustainable lifestyle.
Consumers will still be able to buy Tupperware products through consultants, online, and at retail outlets within these main global markets, Tupperware confirmed.
‘Spark of inspiration’ creates Tupperware
Tupperware Brands originated in 1946. The first items were created by chemist Earl S. Tupper during the early 1940s after he had a “spark of inspiration” while developing molds at a plastics factory, shortly after the Great Depression, according to the company’s website.
Not long after, Brownie Wise organized the inaugural at-home Tupperware party, which led to her being appointed the company’s vice president of marketing in the 1950s.
Over the following decades, Tupperware items became essential in households both locally and globally. However, the company has reportedly “over-relied” on independent sales agents in recent years, causing issues for its overall performance.
