New York. A US bankruptcy judge approved the sale of Tupperware Brands on Tuesday, setting the stage for the renowned food storage company to exit Chapter 11 protection and resume product offerings as it seeks revitalization.

The sale, authorized by a judge in Delaware, is contingent on closing conditions. Under the agreement, a group of lenders will acquire Tupperware’s brand name and various operating assets for $23.5 million in cash, along with over $63 million in debt relief.

Last week, Tupperware shifted from its earlier plan for an asset auction to agree to the lender takeover. Upon completion of the deal, the company anticipates operating under the name "The New Tupperware Co."

Moving forward, customers in key global markets will be able to buy Tupperware products online and through the brand's long-established network of independent sales consultants. The new entity is expected to adopt a "start-up mentality," according to Tupperware.

Details on what this transformation will entail remain unclear. Tupperware did not immediately respond to The Associated Press' request for additional comments on Tuesday.

Tupperware has a rich history, having transformed food storage solutions since its inception after World War II, aiming to help families minimize food waste with its airtight seal. The brand experienced significant growth in the mid-20th century, largely thanks to the success of "Tupperware parties," which began in 1948 as a means for women to earn supplemental income by selling products to friends and neighbors. This model proved so successful that Tupperware eventually withdrew its products from retail stores.

Over the decades, the Tupperware line expanded to include various kitchenware, becoming a household staple in America and beyond. However, the brand has faced challenges in recent years.

In 2013, Indonesia was Tupperware's largest market, followed by Germany, with sales reaching $200 million. This success was largely driven by around 200,000 agents, mostly housewives looking for extra income. While the brand's popularity has declined since then, Tupperware remains a well-known name in Indonesian households.

An outdated business model and increasing competition have contributed to its struggles. When it filed for bankruptcy last month, Tupperware highlighted a shift in consumer preferences away from direct sales—previously the cornerstone of its business model—and toward glass containers instead of plastic.

Although sales saw a temporary boost during the Covid-19 pandemic as more people cooked at home, Tupperware has experienced a consistent decline over the years. Competitors like Rubbermaid, OXO, and even recycled takeout containers have drawn customers away, along with home storage options available at major retailers such as Target, Walmart, and Amazon.

As of its bankruptcy filing, Tupperware reported over $1.2 billion in debts and $679.5 million in assets.

"This situation urgently required a comprehensive global solution," said Spencer Winters, an attorney representing Tupperware, during Tuesday's US Bankruptcy Court hearing. He described the sale agreement as a "great outcome" that would preserve Tupperware's business, customer relationships, and jobs.

The agreement stipulates that Tupperware will become a privately held company under the supportive ownership of the purchasing lender group, which includes hedge fund managers Stonehill Capital Management and Alden Global Capital.

Tupperware announced that the new company will initially focus on markets in the US, Canada, Mexico, Brazil, China, South Korea, India, and Malaysia, with plans to expand into Europe and other Asian markets later.

Additional closing conditions must be resolved before the transaction is finalized, including an outstanding issue with a Swiss entity, as discussed in court on Tuesday.