Latest news with #CollegeInn
Yahoo
2 hours ago
- Business
- Yahoo
138-year-old grocery store staple files for bankruptcy
Del Monte Foods, the 138-year-old company best known for its canned fruits and vegetables, has filed for bankruptcy and is looking for a buyer. Late Tuesday, the company announced it was voluntarily entering Chapter 11 and is going through a sale process for all of its assets. Among the company's product lines are a number of well-known kitchen staples, including College Inn broths and Contadina canned tomatoes, as well as its flagship Del Monte brand. '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 in a statement. Del Monte said it secured $912.5 million in new funding that will allow the company to remain afloat during the sale process and will keep the company operating as normal as it enters the peak canning season. The company listed liabilities estimated between $1 billion and $10 billion, according to court documents. 'With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success,' added Longstreet. He said that the company has 'faced challenges intensified by a dynamic macroeconomic environment,' notably consumers cutting back on their spending and a growing shift toward spending on private labels. 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,' according to Sarah Foss, global head of legal and restructuring at Debtwire. 'Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives.' Del Monte got its start in 1886 and built its famous cannery in San Francisco in 1907. The company claims that it operated the largest fruit and vegetable cannery in the world by 1909. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Times
a day ago
- Business
- New York Times
Del Monte Foods, the Canned Goods Giant, Files for Bankruptcy
Del Monte Foods, the nearly 140-year-old company known for its wide array of canned vegetables and fruits, filed for bankruptcy protection on Tuesday after struggling with rising borrowing costs, pandemic missteps and a changing global economy. The California-based company, facing secured debt of more than $1.2 billion, said it had agreed to a restructuring agreement with lenders that calls for Del Monte to sell 'all or substantially all' of its assets. The company, which also produces College Inn broths, Contadina tomato sauces and Joyba bubble tea, said it had secured $165 million to help continue operations during the Chapter 11 bankruptcy process. '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,' Greg Longstreet, the company's chief executive, said in a statement. Del Monte has for several years faced a number of economic issues and geopolitical concerns. During the coronavirus pandemic, when more people were eating at home, demand rose to record highs, Del Monte said in the filing, and the company committed to higher production levels. Once demand began to ease, Del Monte was left with too much inventory that it was forced to store, write off and 'sell at substantial losses.' The company also said it had carried a large amount of debt since it was acquired in 2014 by Del Monte Pacific Limited, which borrowed to finance the acquisition. Interest rates continued to increase, and the company's annual cash interest expense has nearly doubled since 2020. S&P Global analysts downgraded Del Monte's credit rating last year to B– from B because of poor operating performance. The pressures were compounded by increasingly price-conscious consumers, who are choosing store brands, or private labels, rather than national names like Del Monte. 'About 40 to 45 percent of the total market is serviced by private label players, which are typically at lower prices compared to the branded offerings,' said Arpi Gupta, an analyst at S&P Global. 'We do think that the consumer is stretched right now,' Ms. Gupta said. 'Due to all the inflation that these companies have been facing, average retail prices are anywhere between 25 to 30 percent higher compared to about three years ago.' Tariffs on steel and aluminum would also make cans more expensive. Roughly 80 percent of the steel used for cans for food comes from abroad. Del Monte, founded in 1886, grows most of its produce at family farms across the United States and Mexico, according to the filing, and the majority of the products are locally sourced. 'We remain committed to our mission of expanding access to nutritious, great-tasting food for all,' Mr. Longstreet said.
Yahoo
a day ago
- Business
- Yahoo
Iconic grocery brand Del Monte Foods files for bankruptcy
A canned food company that has been a grocery store staple for over 100 years is filing for bankruptcy in a bid to stay on shelves. Del Monte Foods, recognizable by its iconic green cans, filed for Chapter 11 bankruptcy this week in what President and CEO Greg Longstreet said was a "strategic move" for the 138-year-old company. It will enter into a restructuring agreement, Longstreet said in a July 1 press release, with hopes of shedding its debts and securing a buyer for its remaining assets. "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," Longstreet said in the statement. "While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all." The company secured $912.5 million from investors to stay afloat while it restructures, the release said, and intends to continue serving customers. Besides the canned vegetables brand Del Monte, the company also owns the broth and stock brand College Inn and the tea brand Joyba. This article originally appeared on USA TODAY: Del Monte Foods files for bankruptcy: What customers should know Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
a day ago
- Business
- USA Today
Iconic grocery brand Del Monte Foods files for bankruptcy
A canned food company that has been a grocery store staple for over 100 years is filing for bankruptcy in a bid to stay on shelves. Del Monte Foods, recognizable by its iconic green cans, filed for Chapter 11 bankruptcy this week in what President and CEO Greg Longstreet said was a "strategic move" for the 138-year-old company. It will enter into a restructuring agreement, Longstreet said in a July 1 press release, with hopes of shedding its debts and securing a buyer for its remaining assets. "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," Longstreet said in the statement. "While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all." The company secured $912.5 million from investors to stay afloat while it restructures, the release said, and intends to continue serving customers. Besides the canned vegetables brand Del Monte, the company also owns the broth and stock brand College Inn and the tea brand Joyba.
Fast Company
a day ago
- Business
- Fast Company
Why is Del Monte bankrupt? 138-year-old brand seeks buyer in Chapter 11 filing
A well-known grocery store brand, which has long sold canned fruits and vegetables, has filed for bankruptcy. Del Monte Foods, a 138-year old company, filed for Chapter 11 bankruptcy on Thursday. The company is headquartered in Walnut Creek, California, and operates six production facilities across the U.S., and two in Mexico. The company is now looking for a buyer with plans to sell off all of its assets. 'This is a strategic step forward for Del Monte Foods,' said Greg Longstreet, president and CEO of Del Monte Foods, in a press release. '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. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success.' From canned fruit king to bankruptcy In addition to its flagship Del Monte brand, which includes canned fruits, vegetables, fruit cups, juices, and more, the company is also known for selling College Inn and Contadina products. The company began in 1886 before building a cannery in 1907 in San Francisco in 1907. Just two years later, in 1909, it had become the largest canned fruit and vegetable company in the world, according to the company's website. Del Monte says it has secured $912.5 million in new funding, which includes $165 million from some of its current lenders. The funds will allow the company to continue operations leading up to its sale. The company listed liabilities estimated between $1 billion and $10 billion, per court documents. Mr. Longstreet continued, 'While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all. I am deeply grateful to our employees, growers, customers and vendors, as well as our lenders for their support in helping us achieve our long-term goals.' Overseas operations remain unaffected Del Monte also operates outside of the U.S. and Mexico, with other main locations in the Philippines, Singapore, and India. The company says it doesn't expect interruptions to non-U.S. units, including its operations in Mexico. When it comes to recognizable grocery store products, Del Monte has been one of the biggest staples on the shelves for over a decade. Still, the company is not the only major brand to face financial challenges as of late. A number of fast casual chains, pharmacies, and other stores, such as Big Lots and Joann Fabrics, have all filed for Chapter 11 bankruptcy in recent months, signaling that in a tough market even iconic brands are struggling to hold on. Why is Del Monte filing for bankruptcy now? While Del Monte says increased production costs are to blame for the company's struggles, some experts say that canned foods, which rely heavily on preservatives, are no longer America's go-to at the grocery store. 'Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,' Sarah Foss, global head of legal and restructuring at Debtwire, said, per CNN. While Americans did lean on canned food immediately after Trump announced new tariffs, with more information around the risks of high levels of bisphenol A (BPAs) in canned products, there are plenty of health-focused reasons to avoid them altogether.
