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Economic Times
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Court approves Tupperware's sale to lenders, paving way for brand's exit from bankruptcy
- Tupperware Brands, in the process of exiting Chapter 11 protection, has been sold to a group of lenders for $23.5m in cash and over $63m in debt relief, pending certain closing conditions, following court approval in Delaware.
- Last month, the Florida-based company filed for bankruptcy, with Tupperware reporting more than $1.2bn in debts and $679.5m in assets.
- The airtight food storage firm will become known as The New Tupperware Co after completion of the deal.
- The company said Tupperware will still be sold through an established network of sellers.
- According to Tupperware, customers in 'global core markets' will be able to purchase their products online, though specifics are yet to be released.
- While sales improved during the height of the COVID-19 pandemic, as more people cooked and ate at home, Tupperware experienced a sustained decline in revenue over recent years.
- The shift in consumer behaviour was a significant factor in the firm's struggles, as purchasing habits moved away from direct sales and towards glass containers, as well as home storage lines from firms like Target, Walmart and Amazon.
- At one point in the past, Tupperware was so popular that the brand removed its products from stores.
- Tupperware's bankruptcy papers said its outdated business model and rising competition had played a part in the company's downfall.
- Following the purchase, the new owners promised to rebuild the brand as a start-up and focus on key global markets.
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