Tupperware is being taken over by a group of creditors. They pull the company out of bankruptcy proceedings and continue the food container brand after debt restructuring.
“Likely best result”
Tupperware escapes bankruptcy: just weeks after the US company initiated Chapter 11 proceedings, a group of lenders takes over the kitchenware manufacturer for 23.5 million dollars (21.8 million euros) in cash and more than 63 million dollars (58.4 million euros) in debt relief. At the drop of a hat, as the court was just about to start auctioning off the assets.
The court has yet to officially approve the sale, but already called the deal the “likely best result given the company’s difficult and challenging circumstances”, according to Reuters Tupperware has 818 million dollars in debt, but creditors, who will now take control of the company, have agreed to a debt restructuring.
Europe reboots later
Tupperware has faced declining sales and increasing competition in recent years, mainly due to the emergence of cheaper alternatives and changes in consumer behaviour. The company has struggled to adapt to the digital transformation within the retail sector. With this new deal, Tupperware hopes not only to solve its financial problems but also to make a strategic change in direction.
The maker of storage containers plans to initially target the US, Canada, Mexico, Brazil, China, Korea, India and Malaysia, with Europe and other Asian markets to follow in a second phase. In countries where the company has heavy debts, it will wind down operations.