Brown Rudnick Assists Unsecured Creditors in Tupperware Deal

Brown Rudnick successfully negotiated on behalf of the Official Committee of Unsecured Creditors (UCC) a settlement agreement in the Chapter 11 case of Tupperware Brands that paves the way for a sale of the iconic global brand and consumer products company.

Tupperware announced the deal with the UCC and an ad hoc group of lenders at a bankruptcy court hearing on Oct. 22, 2024, in Wilmington, Delaware.

Under the terms of the deal, the Florida-based company will sell its business to the lenders for $86.5 million in cash and debt relief, as well the assumption of certain contract cure costs. The deal is subject to court approval and other customary closing conditions.

Robert Stark, who leads the Brown Rudnick team, said at the Oct. 22 hearing that the settlement would resolve "a very difficult case" on terms providing substantial recoveries for all unsecured creditors.

Tupperware filed for bankruptcy protection on Sept. 17, 2024, citing a consumer shift away from direct sales, which make up the vast majority of its revenue. Founded in 1946, the brand gained popularity in the 1950s, particularly with the rise of direct sales through "Tupperware parties," and became a staple in kitchens across America and abroad in the decades that followed.

The deal made headlines in The Wall Street Journal, Reuters, Law360 and other news sources, including financial newsletter Petition.

The Brown Rudnick team also includes partners Ben Silverberg and Tristan Axelrod; and associates Matt Sawyer and Lizzy Castano.