Consumer

Tupperware Gets Deal to Avoid Liquidation After Judge Intervenes

  • Bankruptcy judge urged agreement between debtor, lenders
  • Household brand faced threat of liquidation from hedge funds
Tupperware food storage products are displayed on a shelf for sale at a store on Sept. 18 in San Rafael, California. Orlando-based food storage company Tupperware filed for Chapter 11 bankruptcy as sales declined.Photo by Justin Sullivan/Getty Images
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Tupperware Brands Corp. hammered out a deal for its creditors to acquire the business, ending a dispute that’s risked a liquidation of the iconic company after a push from the federal judge overseeing the bankruptcy.

An ad-hoc group of lenders and the bankrupt firm reached an agreement-in-principle, in which the lenders will purchase the business in cash and credit, according to Spencer Winters, a lawyer representing the debtor at a Tuesday hearing in Delaware.