Dive Brief:
- Party Products announced last month it has acquired global rights to the Tupperware brand name, intellectual property and operations in core geographic markets, per a news release.
- The group said it will focus on ensuring operations are uninterrupted in its core markets, with products available through independent Tupperware sales consultants, e-commerce sites and retail partners.
- Tupperware initially entered into an agreement to be acquired by Party Products — which is made up of its lenders, including Stonehill Capital Management Partners and Alden Global Capital — back in October.
Dive Insight:
As of late November, select Tupperware assets are now controlled by a group of the brand’s lenders.
“The deal ensures that the Tupperware brand will live on and that operations will continue — at least for now,” GlobalData Managing Director Neil Saunders said in an email. “However, the company still faces an uphill battle for long-term survival.
Tupperware had been experiencing significant financial headwinds the past few years as overall sales decreased and debt increased, leading to its September bankruptcy filing. Fiscal year 2022 saw net sales drop by more than 18% to $1.3 billion, while revenue for 2023 dropped again and was about $1.1 billion.
Prior to its bankruptcy filing, Tupperware brought on Laurie Goldman as CEO and board director in October 2023. Goldman had previously served in CEO roles for Ovme Aesthetics, Avon North America and Spanx. A representative of Party Products declined to comment on Goldman’s future with the new company.
The company closed its only U.S. manufacturing facility, resulting in layoffs affecting about 150 employees.
While the iconic brand, famous for its direct-selling parties, has found new owners, more may need to be done, according to Saunders
“It needs to pivot away from direct selling as the model is increasingly pressured and find a stronger and more stable distribution strategy,” he said. “It also needs to double down on innovation and design so that it can justify its higher-than-average price points. These things essentially mean rewriting the rule book for Tupperware, which will not be easy.”
