Tupperware Brands, one of the well known name of making food storage and kitchen products, now a bankrupt, has struck a deal to sell its business to a group of lenders for USD 23.5 million in cash, along with over USD 63 million in debt relief, according to Reuters report.
The company, which once dominated the kitchen space of many households, has been navigating through financial challenged and announced the agreement at a bankruptcy court hearing in Wilmington, Delaware. According to a Reuters report, U.S. Bankruptcy Judge Brendan Shannon noted the sale was the best option given Tupperware's "difficult and challenging circumstances.
Tupperware’s Bankruptcy and Debt Struggles
The company, filed for bankruptcy protection on September 2024, and as per the report was burdened by a whopping USD 818 million in debt.
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Although, at the earlier stage the company planned to find a buyer within 30 days through an open-market auction. However, as per Reuters, the sale plans were met with resistance from a group of lenders, who preferred to claim the company's assets for themselves rather than go through the auction process.
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Lenders Take Control of Key Markets
The newly reached sale agreement allows these lenders to acquire the iconic Tupperware brand name and operations in several key global markets, added the report.
Tensions Between Lenders and Creditors
The decision to sell to lenders comes after a heated dispute between Tupperware’s lenders and its other creditors.
As reported by Reuters, the lenders had purchased the company’s debt at a significant discount and furthermore argued that Tupperware’s auction plans would have prevented them from using a debt exchange as part of their bid for the company’s assets.
The struggling kitchen brand countered, insisting the lenders should not block other creditors from benefiting from the sale.
Tupperware’s future under its new ownership is still uncertain. As per Reuters, a separate court hearing will be scheduled to approve the sale, marking a potential turning point for the iconic brand that has been a household name for decades.
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