Del Monte, the 139-year-old canned fruits and vegetables company, seeks bankruptcy protection
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Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses.
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'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,' CEO Greg Longstreet said in a statement.
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Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand.
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The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products.
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'Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,' said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy.
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Grocery inflation also caused consumers to seek out cheaper store brands. And President Donald Trump's 50% tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans.
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Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company's debt restructuring plan. The case was settled in May with a loan that increased Del Monte's interest expenses by $4 million annually, according to a company statement.
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Del Monte said late Thursday that the bankruptcy filing is part of a planned sale of company assets.
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