ORLANDO, Fla. – The beloved yet beleaguered Orlando-based Tupperware Brands agreed in principle Tuesday to be bought by a lender group that includes Stonehill Capital Management Partners and Alden Global Capital, according to a news release.
The sale is expected to close by October’s end, the release states, adding it would mark a new day for the brand “after years of struggling with an over-leveraged balance sheet and outdated operating model.”
This iconic American brand was founded in 1946, headquartered in the Orlando area since 1953 after inventor and founder Earl Tupper purchased more than 1,300 acres of land, according to Tupperware Brands. The colorful plastic containers gave women a chance to make money through direct sales to friends and neighbors via Tupperware parties.
The 78-year-old company filed for Chapter 11 bankruptcy protection in September as it tried to reorganize its finances, already around $1 billion in debt at the time.
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Going forward, what the release dubs “The New Tupperware Company” will be rebuilt in phases with “a start-up mentality,” reassuring customers they will still be able to purchase Tupperware products just about wherever they’re sold.
Tupperware President and CEO Laurie Ann Goldman said in a statement that the company has already made moves to allow for such growth that’s intended to reach markets in the U.S., Canada, Mexico, Brazil, China, Korea, India and Malaysia, as well as European and other Asian markets.
“Tupperware is considered the inventor of the party selling model and made no-leak food conservation products famous. Over the last year, we created a new strategy and operating approach that is digital-first, technology-led and asset-light, and preserved a global footprint for the Company,” Goldman said. “We’ve made tremendous progress and are delighted this group of forward-thinking investors share our vision and will partner with us to grow.”
The sale is subject to approval by the United States Bankruptcy Court for the District of Delaware and other customary closing conditions, according to the release, after which The New Tupperware Company will be privately held.
Tupperware’s stock dwindled following its bankruptcy announcement in September, falling from averages above $1 to now less than 10 cents a share.
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