Del Monte Foods files for bankruptcy after 138 years
An American grocery staple just went bankrupt. Del Monte Foods, the 138-year-old company behind some of America's most recognizable pantry staples, has filed for Chapter 11 bankruptcy protection.
For decades, the company has produced canned fruits and vegetables for American grocery consumers. The food producer filed for bankruptcy protection late Tuesday night. Del Monte said it plans to sell itself as part of an agreement with key lenders and will continue normal operations during the process.
To keep things running, Del Monte secured $912.5 million in financing. Del Monte's portfolio extends beyond canned corn and peaches — it also shelves household names like College Inn, known for soup broth, and Joyba's bubble tea.
'Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives.' The company, once a dominant force in US grocery aisles, now finds itself with between $1 billion and $10 billion in estimated assets and liabilities. Its filing lists up to 25,000 creditors.
'This is a strategic step forward for Del Monte Foods,' CEO Greg Longstreet (pictured) said. '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.'
The company said it will continue non-US grocery sales during the filing as well. Some of its global enterprises are not included in the court filing. It is the latest food-supplying company that has become insolvent, Foss added. 'Del Monte is the fourth company in the food and beverage sector to file for Chapter 11 this year, and the fifteenth since the beginning of 2024,' she said.
Earlier this year, Hearthside Foods emerged from its bankruptcy and rebranded as Maker's Pride. Harvest Sherwood Food Distributors also filed for Chapter 11 in May. Meanwhile, household names are reporting some headwinds.
Campbell's, the company behind the title-name soups and popular snacks from Pepperidge Farm, posted a profit of $66 billion in its latest earnings. The company said it saw a larger-than-expected boost in its low-cost soup sales. Meanwhile, it said consumers were cutting back on snack spending.
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