Tupperware to sell its business for $23.5 million in cash

New Delhi: Tupperware Brands Corporation had agreed to sell its business to a group of lenders for $23.5 million in cash and over $63 million in debt relief, canceling plans for an open-market auction of its assets. The deal was disclosed during a bankruptcy court hearing in Wilmington, Delaware, on Tuesday.

The agreement, reached with secured lenders including Stonehill Capital Management Partners and Alden Global Capital, marks a significant moment for the iconic company after years of financial struggles. The sale involves Tupperware’s intellectual property and operating assets in key global markets.

CEO Laurie Ann Goldman, hired in October 2023 to lead a turnaround, emphasised that the company is transitioning to a digital-first, technology-driven, and asset-light business model. “We’re excited that our investors share our vision and will partner with us to grow,” Goldman said.

The Orlando-based food storage company filed for bankruptcy protection last month, weighed down by $818 million in debt. While some lenders initially opposed the sale, the new deal allows them to acquire Tupperware’s brand and operations in key markets, including the U.S., Canada, Mexico, Brazil, China, Korea, India, and Malaysia. The company plans to exit markets with substantial liabilities.

The restructuring will focus on core markets and emphasize independent sales consultants, e-commerce, and retail partnerships. Lenders such as Alden Global Capital, Stonehill Institutional Partners, and Bank of America are involved in the deal.

Founded in 1946, Tupperware was once a household name but has faced challenges in recent years due to outdated sales models and missed digital opportunities.