Business

Following the completion of the agreement, the brand will become The New Tupperware Co. He said that he expects to operate as.

by Associated Press

November 1, 2024 | 09:00

NEW YORK (AP) — A U.S. bankruptcy judge approved the sale of Tupperware Brands on Tuesday, clearing the way for the iconic food storage company to exit the market soon Chapter 11 protection and continues to offer its products as it undergoes a hoped-for revival.

The sale, which was greenlit by a Delaware court, is still subject to closing conditions. Under the terms of the agreement, a group of lenders will acquire Tupperware’s brand name and various business assets for $23.5 million in cash and more than $63 million in debt relief.

Tupperware agreed to take over the lender last week, building on a previously planned asset auction. Following the completion of the agreement, the brand will become The New Tupperware Co. He said that he expects to operate as.

Going forward, customers in “global core markets” will be able to purchase Tupperware products online and through the brand’s decades-old network of independent sales consultants, but the new company will be “rebuilt with a start-up mentality” as Tupperware is concerned.

Details of what this will look like are unclear. Tupperware did not immediately respond to a request for further comment from The Associated Press on Tuesday.

Tupperware once revolutionized food storage; The roots of the brand, II. It dates back to the post-World War II mission of helping families save on food waste with its airtight lid seal. Plastic utensils experienced massive growth in the mid-20th century, with the rise of direct sales, particularly through “Tupperware parties”.

First held in 1948, the parties were promoted as a way for women, in particular, to earn additional income by selling containers to friends and neighbors. The system worked so well that Tupperware eventually removed its products from stores.

In the following years, the Tupperware line expanded to include cans, cups, cupcake liners, and all manner of utensils, becoming a staple in kitchens across America and eventually abroad. However, the brand has had difficulty keeping up with this in recent years.

An outdated business model and increased competition have contributed to some of the company’s difficulties. Florida-based Tupperware, which filed for bankruptcy last month, said consumers are moving away from direct sales, which account for the vast majority of the brand’s sales, and increasingly prefer glass containers over plastic.

Although sales increased slightly during the height of the COVID-19 pandemic when consumers cooked and ate more meals at home, Tupperware has seen a steady decline overall over the years. Rubbermaid, OXO and even recycled takeout containers are stuck with customers as well as the home storage lines of major retailers like Target, Walmart and Amazon.

Meanwhile, financial difficulties piled up. In its September bankruptcy petition, Tupperware was reported to have more than $1.2 billion in debt and more than $679.5 million in assets.

“This is a situation that requires immediate global resolution,” Spencer Winters, an attorney representing Tupperware, said at a hearing in U.S. Bankruptcy Court on Tuesday. Winters called the sales agreement a “great outcome” that preserved Tupperware’s business, customer relationships and business.

The sales agreements call for Tupperware to become a private company under the supportive ownership of the acquisition lender group, which includes investment firms Stonehill Capital Management and Alden Global Capital.

Last week, Tupperware said the new company’s “initial focus” would be on the US, Canada, Mexico, Brazil, China, South Korea, India and Malaysia, followed by Europe and other Asian markets.

Other closing conditions that must be met before the transaction is completed include an issue involving a Swiss entity that still needs to be resolved, according to court filings on Tuesday.

AP Business Reporter Haleluya Hadero contributed to this report.