Lenders owed $1 billion fight over Tupperware assets

Troubled firm tried negotiating sale of some assets, including famous brand name

Until Sept 17, Tupperware had been a familiar, but fading American brand, synonymous with storing leftovers in the fridge. The name Tupperware itself now stands to grow stale as lenders fight one another and the company in bankruptcy court.

Tupperware Brands filed for Chapter 11 protection on Sept 17 in Wilmington, Delaware. The company plans to sell itself while still operating, according to court filings.

In the meantime, lenders owed about US$800 million (S$1.04 billion) are arguing over the assets, one of which is the precious Tupperware brand name.

Among other issues being hashed out is whether the company should even try to restructure itself, or if a group of aggressive distressed-debt investors should simply foreclose on the brand, its inventory and other assets.

"Facing ever more urgent liquidity needs and continued operational stress, the company restarted marketing efforts for the third time after the July 4 weekend," the chief restructuring officer for Tupperware, Mr Brian Fox, said in court papers.

Tupperware's business problems are not new, but have taken on new life in bankruptcy court as familiar distressed lenders including Stonehill Institutional Partners and Alden Global Capital have become involved.

The company's revenue has been in a downward spiral for most of a decade as the model of independent reps hosting "Tupperware parties" to sell goods, mostly in the suburbs, was upended by cheaper online options and cultural changes.