Tupperware Brands Corporation and its debtor subsidiaries have filed a comprehensive disclosure statement with the U.S. Bankruptcy Court for the District of Delaware, outlining their joint Chapter 11 plan of liquidation. The document, filed on March 6, 2025, in Case No. 24-12156 (BLS), details how the iconic American container company intends to wind down operations and distribute remaining assets to creditors following the sale of core business assets.
According to the disclosure statement, Tupperware had approximately $811.8 million in funded debt obligations at the time of its September 2024 bankruptcy filing. The debt structure included a revolving credit facility, multiple term loan facilities, and an $8 million bridge facility that was entered into shortly before the bankruptcy filing.
"For decades, Tupperware's direct selling business model thrived, offering individuals across the globe—predominantly women—an opportunity to build their own businesses and develop valuable leadership and financial management skills, while also cementing the Tupperware brand in the hearts and homes of consumers," the disclosure statement notes. However, the company struggled in recent years as "the historical strengths of a widespread direct selling model began to turn into weaknesses."
Extensive Marketing Efforts Preceded Filing
The disclosure statement reveals that Tupperware conducted extensive marketing efforts prior to filing for bankruptcy. Beginning in April 2023, the company's investment banker, Moelis & Company LLC, contacted approximately 86 potential financial or strategic investors. Of these, 36 executed confidentiality agreements and gained access to the company's data room, with eight ultimately submitting indications of interest.
A second marketing process was launched in February 2024, reaching out to approximately 84 potential investors with experience in consumer goods, operational turnarounds, and distressed situations. This process yielded five non-binding indications of interest, though only one party presented a comprehensive whole-company solution by the May 15, 2024 deadline.
Sale Process and Asset Disposition
After commencing Chapter 11 proceedings in September 2024, the company conducted a final 30-day sale process. Following a contested hearing in mid-October 2024, the court approved bidding procedures on October 23, 2024. The court subsequently approved a sale transaction on November 24, 2024, which closed on November 27, 2024.
The buyer, Party Products Holdings LLC ("NewCo"), a designee of the company's credit agreement lenders, acquired key assets including the Tupperware brand name. The transaction also included the acquisition via credit bid of equity interests in Premiere Brands International Holdings BV from certain debtor entities.
Liquidation Plan Structure
Under the proposed plan, a liquidating trust will be established to distribute remaining company assets. The plan classifies claims into eight categories:
- Other Secured Claims (unimpaired)
- Other Priority Claims (unimpaired)
- Credit Agreement Claims (impaired, entitled to vote)
- General Unsecured Claims (impaired, entitled to vote)
- Intercompany Claims (unimpaired/impaired)
- Intercompany Interests (unimpaired/impaired)
- Interests in Tupperware (impaired, deemed to reject)
- Section 510(b) Claims (impaired, deemed to reject)
The plan provides for the full payment of allowed administrative claims and priority claims, while secured creditors with claims of approximately $732 million are expected to receive partial recovery through their pro rata share of distributable proceeds. General unsecured creditors will recover their pro rata share from the liquidating trust according to a negotiated allocation formula.
Historical Context and Operational Challenges
The disclosure statement provides a detailed historical overview of Tupperware, tracing its origins to Earl Tupper's founding of the company in 1938. It highlights the pivotal role played by Brownie Wise, who revolutionized the company's sales approach by developing the "Tupperware Party" model in the late 1940s.
The document outlines several factors that contributed to the company's financial difficulties:
- Failure to develop an omnichannel strategy
- Lack of modern e-commerce infrastructure
- Changes to Sales Force compensation models that resulted in attrition
- Macroeconomic cost drivers including inflation and supply chain disruptions
- Revenue decline of over 16% year-over-year in both 2022 and 2023
Liquidation Analysis and Recovery Projections
The disclosure statement includes a detailed liquidation analysis comparing potential recoveries under the proposed plan versus a hypothetical chapter 7 liquidation. According to this analysis, the estimated liquidation value of the Debtors' assets ranges from approximately $1.5 million to $4.7 million, with cash and cash equivalents accounting for approximately $644,000 and potential recoveries from property, plant, and equipment estimated at 10-20% of book value.
The analysis projects that in a chapter 7 scenario, administrative claims, including professional fee carve-outs, would receive between 15.1% and 72.2% recovery, while secured claims, priority claims, and general unsecured claims would receive no recovery. The analysis considers factors such as chapter 7 trustee fees, liquidation costs, and the challenges of recovering value from intercompany receivables and investments in subsidiaries, which have book values of $636 million and $3.3 billion respectively but are projected to yield minimal actual recovery.
Legal Representation and Next Steps
Kirkland & Ellis LLP and Kirkland & Ellis International LLP, along with Cole Schotz P.C., are serving as co-counsel to the debtors. The disclosure statement indicates that the Debtors will seek the Bankruptcy Court's approval of the Plan and "strongly urge all Holders of Claims and Interests entitled to vote to accept the Plan."
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 83 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.