Tupperware Brands (NYSE:TUP) has ditched plans to sell off its assets through an auction after reaching a rescue deal with a group of lenders on Tuesday.
Lenders including Stonehill Capital Management Partners and Alden Global Capital will buy the kitchen products firm for US$23.5 million (£18.1 million) in cash and more than US$63 million in debt relief.
This comes after Florida-based Tupperware filed for bankruptcy last month and launched plans to find a buyer within 30 days.
Debt was said to have reached US$818 million at the time, with the deal set to see the lenders acquire Tupperware’s brand name and operations in several markets.
Tupperware signalled operations were to be wound down in areas where it had liabilities and focus placed on the United States, Canada, Mexico, Brazil, China, Korea, India, Malaysia and eventually Europe.
The deal was unveiled at a bankruptcy court hearing in Wilmington, Delaware, where Judge Brendan Shannon said another hearing to consider approval would soon be held.
This was likely the best outcome for Tupperware given its “difficult and challenging circumstances,” Shannon added.