Del Monte Foods Files for Bankruptcy and Seeks Buyer
Del Monte Foods, a 138-year-old company famous for its canned fruits and vegetables, has filed for bankruptcy and is currently seeking a buyer for its assets.
Chapter 11 Filing and Asset Sale Process
On Tuesday, Del Monte announced it is voluntarily entering Chapter 11 bankruptcy and initiating a court-supervised sale process for all its assets. Its product portfolio includes popular kitchen staples such as College Inn broths, Contadina canned tomatoes, and the flagship Del Monte brand.
Leadership Statement on Turnaround Strategy
President and CEO Greg Longstreet stated that after evaluating all options, a court-supervised sale process offers the best chance to speed up the company’s turnaround and build a stronger, long-lasting Del Monte Foods.
Financial Support and Operational Stability
Del Monte secured $912.5 million in new funding to maintain operations during the sale and ensure stability through the peak canning season. Court filings estimate the company’s liabilities to be between $1 billion and $10 billion.
Challenges in a Changing Market
Longstreet acknowledged that Del Monte has faced difficulties due to a challenging macroeconomic climate, with consumers reducing spending and shifting preferences toward private-label and healthier food alternatives. The company also reported higher costs from excess inventory and increased promotional efforts to move products.
Company History and Legacy
Founded in 1886, Del Monte built its iconic cannery in San Francisco in 1907 and claimed to operate the world’s largest fruit and vegetable cannery by 1909, cementing its place as a leader in canned foods.
