Tupperware Brands received court approval on Tuesday to sell its assets, allowing the company to exit bankruptcy and continue operations under new ownership.
US Bankruptcy Judge Brendan Shannon approved the deal in Delaware, giving the green light for Tupperware to sell its brand name and various core assets to a group of lenders for $23.5 million in cash and over $63 million in debt relief.
The sale agreement marks a major turning point, as Tupperware aims to rebuild with fresh energy after years of financial struggles. The purchase agreement, pending closing conditions, includes Tupperware's assets in significant markets such as the United States, Canada, Mexico, Brazil, and parts of Asia.
Per AP News, once the transaction is complete, Tupperware plans to rebrand as "The New Tupperware Co." with a renewed focus on modernizing its business model. According to statements from the company, the brand intends to adopt a "digital-first, technology-led" approach, moving away from its traditional direct sales method.
Tupperware Targets Key Markets for Revival
Tupperware's past success traces back to its "Tupperware parties" of the 1950s, a groundbreaking concept that allowed customers, particularly women, to earn income by hosting gatherings to sell Tupperware products.
This approach helped the brand expand and gain popularity, but it faced increasing competition from brands like Rubbermaid and OXO in recent years. Additionally, rising consumer interest in sustainable and reusable products has influenced shopping trends, making it harder for Tupperware to maintain its share in the market.
The company initially sought to sell its assets in an open auction to resolve over $1.2 billion in debts. However, lenders such as Stonehill Capital Management and Alden Global Capital opposed the open sale, arguing they could better manage the company's restructuring, according to Reuters.
After negotiations, Tupperware agreed to the lender's offer, which Tupperware attorney Spencer Winters described as an opportunity to preserve jobs and sustain customer relationships.
Tupperware's new strategy will focus on core markets including the US, China, South Korea, and Mexico, with plans to expand into Europe and additional Asian regions. Though certain markets may see a winding down of operations, the reimagined Tupperware aims to revitalize its brand presence globally.
