Tupperware Brands Corporation Announces Agreement to Form ‘The New Tupperware Company’
In a major move, Tupperware Brands Corporation (TUPBQ), the iconic global brand known for its colorful kitchenware and home products, has announced an agreement to form a new entity, ‘The New Tupperware Company.’ This agreement marks a significant step forward for the brand, which has been struggling with an over-leveraged balance sheet and an outdated operating model. The transaction is expected to close by the end of October 2024, subject to customary closing conditions.
The deal involves a group of Tupperware’s secured lenders, including Stonehill Capital Management Partners and Alden Global Capital, collectively known as the ‘Lender Group.’ The Lender Group will acquire all intellectual property necessary for creating and marketing Tupperware’s brand and its award-winning products, along with operating assets in the United States and other key international markets.
The transaction will see the company transition to a digital-first, technology-led, and asset-light business model. This strategic shift reflects a changing consumer landscape and aims to re-energize the brand for a new generation of customers. The new company will initially focus on key global markets such as the United States, Canada, Mexico, Brazil, China, Korea, India, and Malaysia, with plans for future expansion into European and other Asian markets.
Laurie Ann Goldman, President and Chief Executive Officer of Tupperware Brands Corporation, who was appointed in October 2023 to spearhead the company’s reinvention, expressed her enthusiasm for this new chapter. “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,” said Goldman. “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 Lender Group, recognizing the potential of the Tupperware brand, is confident in the company’s future. “We look forward to working with Tupperware’s talented leadership team to execute on the go-forward strategy for this iconic brand,” a representative from the Lender Group said.
While the transaction focuses on rebuilding the brand in key markets, it also involves winding down operations in other markets with significant liabilities. Goldman acknowledged the challenging nature of this decision, stating, “Winding down parts of the Company will be a difficult but necessary decision to protect the future of the Tupperware brand. I want to thank all the wonderful people that will always be a part of the Tupperware family. Change and disruption are challenging, but at times, needed to move forward.”
The New Tupperware Company will be privately held and operated under the ownership of the Lender Group, marking a new era for the brand known for its colorful kitchenware and home products. The new company intends to continue supporting entrepreneurship through its network of independent sales consultants and provide customers with access to Tupperware products through its ecommerce sites and retail partners. This strategic transformation signifies Tupperware’s commitment to adapting to the evolving market while preserving its legacy of innovation and sustainable lifestyle solutions.