Tupperware Agrees to Lender Takeover After Canceling Auction Amid Bankruptcy

Tupperware Brands, the iconic food storage and kitchen products company, has reached an agreement to sell its business to a group of lenders for $23.5 million in cash and over $63 million in debt relief. This decision comes as the company navigates bankruptcy, leading to the cancellation of its plans for an open-market auction of its assets.

The announcement was made during a bankruptcy court hearing in Wilmington, Delaware, where U.S. Bankruptcy Judge Brendan Shannon indicated he would quickly schedule a hearing to approve the sale. He remarked that this agreement appears to be the best option given Tupperware’s “difficult and challenging circumstances.”

Based in Orlando, Florida, Tupperware filed for bankruptcy protection last month, burdened with $818 million in debt. The company initially aimed to find a buyer within 30 days. However, a faction of its lenders opposed the sale, seeking to claim the assets themselves instead.

New Direction for Tupperware

Under the new agreement, lenders—including Alden Global Capital, Stonehill Institutional Partners, and a trading desk of Bank of America—will acquire Tupperware’s brand name and operations in key markets. According to Tupperware attorney Spencer Winters, the company will initially focus on markets such as the United States, Canada, Mexico, Brazil, China, Korea, India, and Malaysia, with plans to expand into European and additional Asian markets later.

Tupperware will wind down operations in regions where it faces significant liabilities, CEO Laurie Ann Goldman stated after the court hearing.

A Compromise Deal

Last week, during a court hearing, Tupperware argued against allowing lenders, who bought the company’s debt at a steep discount, to squeeze out other creditors from benefiting in a sale. The lenders contended that Tupperware’s proposed auction would unfairly limit their ability to bid using a debt exchange.

The new agreement represents a compromise, enabling lenders to utilize debt cancellation as part of the purchase price while also ensuring that Tupperware receives cash to address other outstanding debts.

A Nostalgic Legacy

Tupperware gained immense popularity in the 1950s as women held “Tupperware parties” at home, using the gatherings as a means of empowerment and independence. However, the company has struggled in recent years, relying heavily on independent sales representatives and missing opportunities to expand online and in retail stores.

As Tupperware embarks on this new chapter, the outcome of this lender takeover will be closely watched, not just by investors but by consumers who fondly remember the brand’s storied legacy.