Tupperware secures lifesaving debt restructuring
Household products company Tupperware Brands has sealed a deal with lenders to restructure its debt obligations, which is expected to help improve the business’s financial position and avoid bankruptcy.
The agreement includes the reallocation of US$150 million of cash interest and fees, and the extension of the stated maturity of principal and reallocated interest and fees worth $348 million to FY27.
The company is also entitled to the reduction of amortisation payments required to be paid in FY25 by $55 million and immediate access to a revolving borrowing capacity of $21 million.
“I am confident that this agreement provides us with the financial flexibility to continue executing on our near-term turnaround efforts as well as our long-term strategy to create a global omnichannel consumer brand,” said Tupperware’s CFO Mariela Matute.
Tupperware previously faced the risk of collapse as it failed to attract sufficient capital, forcing the company to seek potential investors and engage with legal and financial advisors.
The company received a delisting warning from the New York Stock Exchange after failing to file its annual reports and recorded a $28.4 million loss in the fourth quarter of FY22.
It also withdrew from New Zealand last year after 49 years of operations in the market.
Founded in 1946, Tupperware Brands is known for its problem-solving kitchen and home products, which are distributed to nearly 70 countries.
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