NEW YORK. Tupperware Brands received court approval on Tuesday to sell its brand name and key assets to a consortium of lenders, bringing it one step closer to exiting Chapter 11 bankruptcy. The decision, handed down by a U.S. bankruptcy judge in Delaware, grants Tupperware the opportunity to relaunch under new ownership, sustaining its operations while pursuing a strategic overhaul.
The approved agreement involves a sale of Tupperware’s brand and assets for $23.5 million in cash, along with over $63 million in debt forgiveness, marking a significant financial relief for the troubled company. “This is a situation that was in urgent need of a vast global resolution,” said Spencer Winters, an attorney for Tupperware, in Tuesday’s court proceedings. He hailed the sale as a “great outcome” that will preserve Tupperware’s operations, protect customer relationships, and retain jobs.
Pending the fulfillment of final closing conditions, the deal will see Tupperware rebranded as The New Tupperware Co., a private entity under the ownership of prominent hedge funds Stonehill Capital Management and Alden Global Capital. The arrangement eliminates the need for an asset auction, a path Tupperware had previously considered.
In its upcoming phase, the company plans to maintain its longstanding sales channels, including its global network of independent consultants, while also expanding online shopping options. Tupperware noted it will adopt a “start-up mentality” as part of its new business model, though specific details about this transformation remain unclear. The brand’s spokesperson did not respond to requests for further clarification on its strategic direction.
Established post-World War II, Tupperware revolutionized food storage with its airtight-seal containers, becoming a household name through “Tupperware parties”—a direct-sales method empowering women to earn supplemental income from their homes. By the mid-20th century, these sales events, first launched in 1948, became a cultural phenomenon and allowed Tupperware to gain a foothold in kitchens across America.
However, recent years saw Tupperware struggle under an outdated business model. Competition from brands like Rubbermaid and OXO, as well as increased preference for glass containers, diminished its market share. While demand briefly surged during the COVID-19 pandemic as more consumers cooked at home, Tupperware’s reliance on direct sales proved unsustainable amid shifting consumer habits.
Financial challenges escalated as Tupperware faced mounting debt, amounting to $1.2 billion, as reported in its September bankruptcy filing. With only $679.5 million in assets, the Florida-based company turned to Chapter 11 to address its liabilities and pursue a path to sustainability.
The initial focus for The New Tupperware Co. will be on major markets in North America, South America, and Asia, including the U.S., Canada, Mexico, Brazil, China, South Korea, India, and Malaysia. Following this, the brand plans to expand into Europe and additional Asian regions. However, a pending issue involving a Swiss entity must be resolved before the transaction can be finalized, according to statements made in court.
As the storied brand transitions into a new era, Tupperware’s dedicated consumer base may soon witness a reimagined version of the company that has been a mainstay in household storage solutions for decades.
Gary P Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
