Judge Approves Sale of Tupperware

UPDATE Oct 30, 2024 12:30 AM CDT

A US bankruptcy judge approved a sale of Tupperware Brands on Tuesday, paving the way for the iconic food-storage company to soon exit Chapter 11 protection and continue offering its products while undergoing a hoped-for revitalization, the AP reports. Under terms of the deal, which is still subject to closing conditions, a group of lenders is buying Tupperware's 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 "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 is set to be "rebuilt with a start-up mentality," Tupperware said.

Sep 18, 2024 6:57 AM CDT

Tupperware Brands, the company that revolutionized food storage decades ago, has filed for Chapter 11 bankruptcy protection. The company plans to continue operating and will seek court approval for a sale, it said just before midnight on Tuesday. The company is seeking bankruptcy protection amid growing struggles to revitalize its business, reports the AP. Tupperware sales growth improved during the early days of the COVID-19 pandemic, but overall sales have been in steady decline since 2018 due to rising competition. And financial troubles have continued to pile up for the company based in Orlando, Florida.

Doubts around Tupperware's future have floated around for some time. Last year, the company sought additional financing as it warned investors about its ability to stay in business and its risk of being delisted from the New York Stock Exchange. Shares have fallen 75% this year and closed Tuesday at about 50 cents apiece. Tupperware experienced explosive growth in the mid 20th century with the rise of Tupperware parties, first held in 1948. At a time when many women didn't work outside the home, Tupperware parties gave them a chance to run their own businesses out of their homes, selling the products within social circles. The system worked so well Tupperware removed its products from stores three years later. Social changes, namely fewer dinners made from scratch and more nights spent dining out, took a toll Tupperware sales.

(More Tupperware stories.)