Tupperware's Turnaround: Lenders to Acquire Iconic Brand Amid Bankruptcy Proceedings

Bankrupt Tupperware Brands has agreed to sell its business to a group of lenders for $23.5 million in cash and debt relief. The deal, announced during a bankruptcy court hearing, ends plans for an open-market auction. The sale allows lenders to acquire Tupperware's operations and brand name.

Bankrupt Tupperware Brands has revealed plans to sell its business to a consortium of lenders. The agreed transaction involves $23.5 million in cash and over $63 million in debt relief, effectively canceling an open-market auction originally planned for the company's assets.

U.S. Bankruptcy Judge Brendan Shannon announced during a hearing in Wilmington, Delaware, that a separate court session would soon be scheduled to review the sale's approval. Tupperware, saddled with $818 million in debt, filed for bankruptcy last month and sought a buyer within 30 days. However, opposition came from a faction of the company's lenders who preferred to claim the assets directly.

The finalized sale terms will enable these lenders to acquire Tupperware's brand and operations globally. Tupperware's attorney, Spencer Winters, noted that the deal balances the interests by incorporating debt cancellation into its purchase price while obliging the lenders to supply additional cash for Tupperware's other debts.

(With inputs from agencies.)