Del Monte Foods, the 138-year-old food giant known for its iconic canned fruits and vegetables, has filed for Chapter 11 bankruptcy in a bid to stay on shelves. The company, a staple in American kitchens for generations, is seeking to navigate mounting financial challenges and changing consumer preferences that have impacted its bottom line.
In a statement released earlier this week, Del Monte confirmed it was voluntarily entering a court-supervised bankruptcy process and intends to sell all of its assets. The company’s portfolio includes popular household brands such as College Inn broths, Contadina canned tomatoes, Joyba teas, and its flagship Del Monte label.
“After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods,” said President and CEO Greg Longstreet.
To maintain operations during the restructuring, the company has secured USD 912.5 million in financing from investors. This funding will support business continuity through the peak canning season and provide stability as the company prepares for a potential sale. According to court filings, Del Monte’s estimated liabilities fall between USD 1.0 billion and USD 10.0 billion.
Longstreet emphasized that the goal of the restructuring is to emerge with a healthier balance sheet and better positioning for the future. “With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success,” he noted.
“Del Monte says that consumer demand has declined, causing it to incur increased costs related to surplus inventory that it has had to warehouse and attempt to move off shelves with increased promotional spending,” explained Sarah Foss, global head of legal and restructuring at Debtwire.
Founded in 1886, Del Monte built its first cannery in San Francisco in 1907 and quickly grew to become a major player in the U.S. food industry. By 1909, the company claimed to operate the largest fruit and vegetable cannery in the world.
