NEW YORK – A US bankruptcy judge approved the sale of Tupperware brands Tuesday, paving the way for the iconic food shortage company’s upcoming exit Chapter 11 Protection and continue to offer its products while experiencing a hoped-for revitalization.

The sale, which received the green light from the Delaware court, is still subject to closing conditions. Under the terms of the deal, a group of lenders is purchasing the Tupperware brand and various operating assets for $23.5 million in cash and more than $63 million in debt relief.

Tupperware agreed to the lender’s buyout last week, deviating from a previously planned asset auction. The brand said it plans to operate under the name The New Tupperware Co. once the deal closes.

In the future, customers in “major global markets” will be able to buy Tupperware products online and through the brand’s decades-old network of independent sales advisors, but the new company is about to be “rebuilt with a start-up mentality”, Tupperware. said.

The details of what this will look like are unclear. Tupperware did not immediately respond to requests for additional comment from The Associated Press on Tuesday.

Tupperware once revolutionized food storage, with the brand’s roots dating back to a post-World War II mission to help families save money on food waste with a tight-fitting lid. Plastic kitchen utensils experienced a meteoric rise in the mid-20th century, particularly with the rise of direct sales via “Tupperware parties.”

Organized for the first time in 1948, the festivals were presented as a way for women in particular to earn additional income by selling the containers to their friends and neighbors. The system worked so well that Tupperware eventually pulled its products from stores.

Over the next decades, the Tupperware line expanded to include boxes, beakers, cake dishes, and all manner of utensils, and became a staple in kitchens across America and eventually America. stranger. But the brand has struggled to keep up in recent years.

An outdated business model and growing competition have contributed to some of the challenges the company faces. When filing for bankruptcy last month, Florida-based Tupperware noted that consumers were moving away from direct sales, which accounted for the vast majority of the brand’s sales, and increasingly favoring plastic containers. glass rather than plastic.

While sales improved some During the height of the COVID-19 pandemic, as consumers cooked and ate more at home, Tupperware saw a generally steady decline over the years. Rubbermaid, OXO and even recycled takeout containers have attracted customers, along with home storage lines at major retailers like Target, Walmart and Amazon.

Financial problems accumulated in the meantime. In its September bankruptcy filing, Tupperware reported more than $1.2 billion in debts and $679.5 million in assets.

“This is a situation that urgently required a broad, global resolution,” Spencer Winters, an attorney representing Tupperware, said during a hearing in U.S. Bankruptcy Court on Tuesday. Winters called the sale deal a “great outcome” that he said preserves Tupperware’s business, customer relationships and jobs.

The sales agreements call for Tupperware to become a private company under joint ownership of the buyer lender group, which includes hedge fund managers Stonehill Capital Management and Alden Global Capital.

Last week, Tupperware said the new company would “initially focus” on the United States, Canada, Mexico, Brazil, China, South Korea, India and Malaysia, followed by markets additional Europeans and Asians.

Other closing conditions that must be met before the transaction is finalized include an issue with a Swiss entity that still needs to be resolved, according to filings made in court Tuesday.

_______

AP Business reporter Haleluya Hadero contributed to this report.