Tupperware Brands, the beloved kitchenware company known for its signature plastic containers, has officially declared bankruptcy.
According to PR Newswire, the company has agreed to sell its business to a group of lenders for $23.5 million (RM102.1 million) in cash and over $63 million (RM273.8 million) in debt relief, canceling its earlier plans to auction off assets.
The announcement was made during a bankruptcy court hearing in Wilmington, Delaware.
U.S. Bankruptcy Judge Brendan Shannon stated that a follow-up hearing would be scheduled soon to approve the sale, acknowledging the sale as the most viable option given Tupperware’s financial troubles.
Filed for bankruptcy protection last month
Tupperware, based in Orlando, Florida, filed for bankruptcy protection last month, reporting $818 million (RM3.556 billion) in debt. It had hoped to secure a buyer within 30 days.
However, some lenders opposed the auction plan and expressed interest in directly acquiring company assets.
The new deal will allow these lenders to acquire the Tupperware brand name and core operations in key markets, including the U.S., Canada, Mexico, Brazil, China, South Korea, India, and Malaysia.
Tupperware’s attorney, Spencer Winters, revealed that the company intends to expand to other regions across Europe and Asia.
Operations to cease in some markets
CEO Laurie Ann Goldman confirmed that Tupperware will cease operations in markets burdened by high liabilities.
During a recent hearing, Tupperware argued that the lenders should not benefit unfairly from the sale at the expense of other creditors.
The lenders countered that the auction process would have blocked them from using debt exchange as part of their bid for the company’s assets.
Lenders set to take control of Tupperware include Alden Global Capital, Stonehill Institutional Partners, and Bank of America.