Tupperware reaches agreement to sell to lending group after bankruptcy – Orange County Register

A group of creditors is set to acquire Tupperware Brands, allowing the Kissimmee-based company to emerge from Chapter 11 bankruptcy protection and halt a planned asset sale.

Tupperware filed for bankruptcy last month amid a growing battle to revive its brand. At the time, the company reported more than $1.2 billion in total debt and $679.5 million in total assets, according to its bankruptcy filing.

Post-war America saw an explosion in sales of Tupperware and plastic food storage containers. This success was largely due to the emergence of Tupperware parties—social gatherings at which individual consultants, most of whom were women, sold products out of their homes. This practice became so popular that in 1951, Tupperware removed its products from many stores.

“In recent years, however, the historical advantages of the widespread direct sales model have begun to turn into disadvantages,” Brian Fox, the company’s chief restructuring officer, wrote in the bankruptcy filing.

The company struggled to adopt a diversified sales strategy and was slow to move toward online trading, which added to its financial woes, he said.

The company began selling its products in Target stores only in 2022, and created the Amazon online store that same year. It started being sold at Macy’s earlier this year.

As part of the upcoming sale, approved by a U.S. bankruptcy judge, Tupperware will receive $23.5 million in cash and $63.5 million in debt relief. In exchange, the lending group preparing to acquire it will receive Tupperware intellectual property to “build and promote the Tupperware brand” in the future.

The group looking to buy Tupperware includes Alden Global Capital—owner of Southern California News Group’s parent company, Tribune Publishing—and Stonehill Capital Management Partners.

According to Tupperware, the company plans to rename itself The New Tupperware Company and shift to a “startup mentality” while continuing to focus on core markets such as the US, Canada, Mexico, Brazil, China, Korea, India and the US. Malaysia.

At the time of its Chapter 11 bankruptcy filing, Tupperware employed more than 5,450 people in 41 countries and partnered with more than 465,000 consultants worldwide to sell products on a freelance basis in nearly 70 countries.

The Associated Press contributed to this report.

Originally published: October 30, 2024 12:10 PM PDT