Famed storage container maker Tupperware Brands Inc. is restructuring debt, buying itself time in the process, as the company hopes to execute a turnaround.
Latest: Tupperware to close its only US manufacturing plant in fall 2024
The Orlando, Fla.-based company shocked many in April with a warning that the company might not survive under the weight of debt.
But the company revealed Aug. 3 a new deal with lenders to restructure loans, a move that includes "extending the maturity of certain debt facilities to allow it to continue with its turnaround efforts."
Tupperware characterized the actions as a comprehensive restructuring and reallocation of debt.
Tupperware reports the "reduction/reallocation" of about $150 million of cash interest and fees as well as the extension to 2027 for about $348 million in debt. Tupperware said the company was further able to reduce payments required through fiscal year 2025 by about $55 million. The company also gains immediate access about $21 million in a revolving credit.
"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 omni-channel consumer brand," Chief Financial Officer Mariela Matute said in a statement.
Tupperware, for decades, relied exclusively on at-home parties to sell their products.
But the company has signaled plans to expand the selling strategy beyond that approach, including recently selling products in Target stores.
Tupperware has always been more expensive than retail counterparts, but also enjoyed a reputation of higher quality. The company's iconic designs helped carve out a niche in the food ware market for decades. But plastic containers have evolved into somewhat of a commodity market, and Tupperware has attempted to remain viable at the top end of the kitchen segment.
"We are committed to making ongoing progress in improving liquidity and strengthening our capital structure," Matute said in the statement.