Tupperware has been saved by a group of creditors, who pull the company out of bankruptcy proceedings and continue the brand after a debt restructuring.
“Likely the best result”
Tupperware escapes bankruptcy: just weeks after the American company initiated Chapter 11 proceedings, a group of lenders takes over the kitchenware manufacturer for 23.5 million dollars (22 million euros) and 63 million dollars (almost 60 million euros) in debt relief. The rescue mission came at the last possible moment, 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 comes 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 four major markets in the Americas (Canada, the United States, Mexico and Brazil) as well as four major markets in Asia (China, India, Korea 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.
