Orlando's Tupperware gets extension to repay debt

Tupperware Brands Corp. (NYSE: TUP) is getting another shot at making good on its promises.

Struggling to pay its debts, the company worked out a temporary payment postponement agreement with its lenders that should last until June. The Orlando-based company reorganized its debt in August, committing to aggressive turnaround efforts.

The payment agreement details were included in a Feb. 16 Securities and Exchange Commission 8K filing. Primary lender Wells Fargo Bank and the other lenders agreed not to take action against Tupperware for falling behind on payments until June 30 or until they decide to end this agreement.  

“It's common for companies in the midst of restructuring operations to restructure debt with their lenders,” said Dena Jalbert, founder and CEO of Align Business Advisory Services who also was a 2023 OBJ Power Player.   

As part of the agreement, Tupperware had to make a payment of about $10.9 million. The kitchenware manufacturer still will be able to access the revolving credit facility with a limit of about $36.4 million. The exact amount Tupperware owes hasn't been specified. 

Jalbert said lenders would rather work with a struggling company with the hopes of having the debt serviced versus trying to force payment and have the company declare bankruptcy because it cannot pay the outstanding debt.  

“Tupperware also seemingly was raising capital to help finance some of its debt and operational restructuring,” said Jalbert. “The four-month extension to June may signal that the fundraising they are doing is nearly complete, and this allows them a bit more time to finish that raise.” 

Since Tupperware named Laurie Ann Goldman as its new president, CEO and board director on Oct. 17, the company has leaned into its omnichannel strategy, which already was underway and was strengthened by Goldman’s leadership, according to Chair Susan Cameron.  

Goldman, formerly of Spanx, Avon and Guess, is a proven leader in marketing consumer goods, as the CEO who shepherded Spanx from startup to globally known omnichannel presence.  

Tupperware stock surged to $2.55 per share after Goldman was hired, spiking again to $2.55 at Christmas and dropping in 2024. As of the time of publication, Tupperware stock was at $1.35 per share. Tupperware did not respond to a request for comment. 

Tupperware is one of a handful of publicly traded companies headquartered in Central Florida.

See how Tupperware has made news in the past year:

Sign up here for our free morning and afternoon daily newsletters. And be sure to follow us on LinkedIn, Facebook, X and Instagram.