A U.S. bankruptcy judge approved a sale of on Tuesday, paving the way for the iconic food storage company to soon exit and continue offering its products while undergoing a hoped-for revitalization.
The sale given the courtB次元官网网址檚 green light in Delaware still is subject to closing conditions. Under terms of the deal, a group of lenders is buying TupperwareB次元官网网址檚 brand name and various operating assets for $23.5 million in cash and more than $63 million in debt relief.
Tupperware agreed to the lender takeover last week, pivoting from a previously planned asset auction. The brand said it expects to operate as The New Tupperware Co. upon completion of the deal.
Going forward, customers in B次元官网网址済lobal core marketsB次元官网网址� will be able to purchase Tupperware products online and through the brandB次元官网网址檚 decades-old network of independent sales consultants, but the new company is set to be B次元官网网址渞ebuilt with a start-up mentality,B次元官网网址� Tupperware said.
The specifics of how that will look are unclear. Tupperware did not immediately respond to The Associated PressB次元官网网址� requests for further comment Tuesday.
Tupperware once revolutionized food storage, with the brandB次元官网网址檚 roots dating back to a post-World War II mission of helping families save money on food waste with an airtight lid seal. The plastic kitchenware saw explosive growth in the mid-20th century, notably with the rise of direct sales through
First held in 1948, the parties were promoted as a way for women in particular to earn supplemental income by selling the containers to friends and neighbors. The system worked so well that Tupperware eventually removed its products from stores.
In the following decades, the Tupperware line expanded to include canisters, beakers, cake dishes and all manner of implements, and became a staple in kitchens across America and eventually abroad. But the brand struggled to keep up in more recent years.
An outdated business model and rising competition contributed to some of the companyB次元官网网址檚 challenges. When filing for bankruptcy last month, Florida-based Tupperware noted that consumers were shifting away from direct sales, which made up the vast majority of the brandB次元官网网址檚 sales, and increasingly favoring glass containers over plastic.
While sales during the height of the COVID-19 pandemic, when consumers cooked and ate at home more, Tupperware saw an overall steady decline over the years. Rubbermaid, OXO and even recycled takeout food containers snagged customers B次元官网网址� as well as home storage lines at major retailers like Target, Walmart and Amazon.
piled up in the meantime. In SeptemberB次元官网网址檚 bankruptcy petition, Tupperware reported more than $1.2 billion in debts and $679.5 million in assets.
B次元官网网址淭his is a situation that was in urgent need of a vast global resolution,B次元官网网址� Spencer Winters, an attorney representing Tupperware, said during a U.S. Bankruptcy Court hearing Tuesday. Winters called the sale agreement a B次元官网网址済reat outcomeB次元官网网址� that he said preserves TupperwareB次元官网网址檚 business, customer relationships and jobs.
The sale agreements calls for Tupperware to become a privately held company under supportive ownership of the purchasing lender group, which includes hedge fund managers Stonehill Capital Management and Alden Global Capital.
Last week, Tupperware said the new companyB次元官网网址檚 B次元官网网址渋nitial focusB次元官网网址� would be in the U.S., Canada, Mexico, Brazil, China, South Korea, India and Malaysia, followed by European and additional Asian markets.
Other closing conditions that must be met before the transaction is completed include an issue with a Swiss entity that still needs to be resolved, according to statements made in court Tuesday.
