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Al Jazeera
14 hours ago
- Business
- Al Jazeera
Del Monte seeks bankruptcy protection as consumers turn away
Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as consumers in the United States increasingly bypass its products for healthier or cheaper options. Del Monte announced the bankruptcy filing late Tuesday. Del Monte, which also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand, has secured $912.5m in debtor-in-possession financing that will allow it to operate normally as the sale progresses. The Walnut Creek, California-based brand has assets and liabilities ranging from $1bn to $10bn, according to a filing in a New Jersey bankruptcy court. '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. The company has seen sales growth of Joyba and broth in the 2024 fiscal year, but not enough to offset weaker sales of Del Monte's signature canned products. 'Consumer preferences have shifted away from preservative-laden canned food in favour of healthier alternatives,' Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy, told the news agency The Associated Press. Grocery inflation also caused consumers to seek out cheaper store brands. Last month, the consumer price index report showed a 0.3 percent increase in the price of food and 2.2 percent compared with this time last year. Another blow is expected from US President Donald Trump's 50 percent tariff on imported steel. This went into effect in June and will also push up the price that Del Monte and others pay for cans. 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 $4m annually, according to a company statement. Del Monte's stock is about even from the market open, and it is up 4.62 percent over the last five days.
National Post
15 hours ago
- Business
- National Post
Del Monte, the 139-year-old canned fruits and vegetables company, seeks bankruptcy protection
Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as U.S. consumers increasingly bypass its products for healthier or cheaper options. Article content Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses. Article content Article content '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. Article content Article content 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. Article content Article content 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. Article content '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. Article content 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. Article content 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. Article content Del Monte said late Thursday that the bankruptcy filing is part of a planned sale of company assets. Article content
Entrepreneur
17 hours ago
- Business
- Entrepreneur
Canned Food Company Del Monte Foods Files for Bankruptcy
The 138-year-old company, Del Monte Foods, has filed for bankruptcy, the company said in a statement. "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. Related: This Pricey Pineapple Costs Nearly $400 — And It's Already Selling Out Del Monte is entering Chapter 11 and is looking for a buyer to acquire its assets. The company calls itself "The Original Plant-Based Food Company" and makes a variety of canned fruits and vegetables. In addition to the name brand Del Monte, the company produces Contadina canned tomatoes and broths from College Inn. "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," Longstreet said. Del Monte is based in Walnut Creek, California. The company noted in the statement that it secured $912.5 million from its lenders to fund its operations while the company is being sold. "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," Longstreet said. Related: Job Search Pioneers CareerBuilder and Monster File for Bankruptcy Less than a Year After Merger
Axios
18 hours ago
- Business
- Axios
Del Monte Foods files for bankruptcy, plans to pursue sale
Del Monte Foods has filed for Chapter 11 bankruptcy protection and announced it is pursuing a sale. Why it matters: The nearly 140-year-old company — known for staples like canned vegetables and fruit cups — has faced mounting pressures from changing consumer habits, supply chain volatility and rising costs. The company said it has secured support from key creditors for a plan to sell its key assets and stay in business. Zoom in: Del Monte has been suffering from excessive debt, a downturn in consumer demand, increased discounting, a declining private label business and higher costs from inflation, according to a court filing. The company, like other consumer packaged goods brands, has "experienced changing consumer purchase behavior and increased inflationary costs," chief restructuring officer Jonathan Goulding said in a court filing. Context: Founded in 1886 in California, Del Monte eventually became one of the nation's leading packaged fruit sellers. Today, Del Monte has about 2,780 employees and four factories, with two in the U.S. and two in Mexico. The company's brands include its namesake lineup of canned fruit as well as Contadina, College Inn and Joyba. It also sells under private labels, but that business has been shrinking. The company, which is not affiliated with Fresh Del Monte Produce, said in a statement that non-U.S. subsidiaries are not included in the Chapter 11 proceedings. Threat level: The company racked up extra debt in 2023 as it anticipated higher volume — but sales instead fell in the next fiscal year, leaving it with "outsized production commitments," greater costs and higher promotional spending, according to Goulding. The company said it recently closed certain production facilities to reduce its cost structure. But its annual interest expenses exceed projected earnings, leaving it with "historically low liquidity," Goulding said.
CTV News
20 hours ago
- Business
- CTV News
138-year old grocery store staple files for bankruptcy
Del Monte Foods has voluntarily entered Chapter 11 and is looking for a buyer. (Lisa Poole/AP via CNN Newsource) NEW YORK — 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 Thursday, 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 US$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. By Jordan Valinsky, CNN
