Latest news with #DelMontePacific
Forbes
3 hours ago
- Business
- Forbes
Philippine Tycoon Joselito Campos Del Monte Pacific's U.S. Unit Files For Bankruptcy
Del Monte branded cans of pineapple chunks sit on a shelf in a grocery store in Manila, the ... More Philippines, on Friday, Oct. 11, 2013. Del Monte Pacific—the canned food producer controlled by Philippine food-to-pharmaceuticals tycoon Joselito Campos and his siblings—said it will deconsolidate its U.S. subsidiary, which has filed for bankruptcy. Del Monte Pacific announced the deconsolidation of Del Monte Foods Holdings Ltd. (DMFHL) late Wednesday in a statement to the stock exchanges of Singapore and the Philippines where shares of the Manila-based company are listed. 'The company is in the process of assessing the financial impact that its deconsolidation of DMFHL might have on the Del Monte Pacific Group,' Del Monte Pacific said in the statement. 'Updates on such financial implications will be provided in due course.' Del Monte Pacific—known for its canned pineapple and fruit cocktail as well as its sauces—said its net investment in DMFHL was at $579 million as of Jan. 31. In addition, Del Monte Pacific and its affiliates have $169 million in net receivables from DMFHL and its units, including Del Monte Foods Inc. Del Monte Pacific shares tumbled 8.2% in morning trading in Singapore, heading for its second day of decline. 'The value to be impaired will be determined after the audit,' Del Monte Pacific said. 'Updates on the financial impacts will be provided in due course.' Del Monte Philippines, along with its Asian and international business, continue to perform well and its operation will remain uninterrupted, it added. Del Monte Pacific said it lost control of DMFHL in June after skipping debt payments. As a consequence, creditors appointed a majority of directors to the boards of DMFHL and its units while 25% of Del Monte Pacific's equity in DMFHL was transferred to the lenders. DMFHL newly constituted board entered into a restructuring agreement with a group of lenders. Under the agreement, all or substantially all of the company's assets and its subsidiaries would be sold through Chapter 11 proceedings in the U.S. As part of the Chapter 11 proceeding, DMFHL and its subsidiaries will have access to approximately $912.5 million in 'debtor in possession' financing to fund their ongoing operations, Del Monte Pacific said. Del Monte Pacific is among the assets owned by Campos and his siblings, who inherited Unilab, one of the Philippines' largest pharmaceutical companies that was co-founded by their late father, Jose Campos, almost eight decades ago. The Campos family is among the wealthiest in the Philippines with a net worth of $940 million, according to Forbes Asia.
CBC
12 hours ago
- Business
- CBC
Canned foods giant Del Monte files for bankruptcy protection
Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as consumers increasingly bypass its products for healthier or cheaper options. Del Monte has secured $912.5 million US in debtor-in-possession financing that will allow it to operate normally as the sale progresses. "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. Del Monte Foods, based in Walnut Creek, Calif., also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands, as well as the Joyba bubble tea brand. 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. "Consumer preferences have shifted away from preservative-laden canned food in favour of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy. Grocery inflation also caused consumers to seek out cheaper store brands. And U.S. President Donald Trump's 50 per cent tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must 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 $4 million US annually, according to a company statement. Del Monte said late Tuesday that the bankruptcy filing is part of a planned sale of company's assets.
New York Times
12 hours 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.
Business Insider
15 hours ago
- Business
- Business Insider
Why canned food staple Del Monte filed for bankruptcy (and won't be disappearing from shelves anytime soon)
One of America's top canned foods companies is looking for a reset. Grocery store mainstay Del Monte Foods filed for Chapter 11 bankruptcy this week, saying it wants to restructure to shed old debts and remain in business. The nearly 140-year-old brand is looking to sell its assets following recent plant closures and a controversial $240 million debt restructuring deal last year that prioritized some creditors over others. CEO Greg Longstreet said in a statement that a "court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods." That doesn't mean the packaged-food company, best known for offering a wide selection of canned fruits and vegetables, will disappear from store shelves. The company said it has secured $912.5 million in financing from existing lenders, which would allow it to remain in business while it looks for a buyer. "With an improved capital structure, enhanced financial position, and new ownership, we will be better positioned for long-term success," he said. Del Monte reported in filings with the US bankruptcy court in New Jersey that it owed more than 10,000 creditors combined debts of between $1 billion and $10 billion. In addition to the Del Monte brand, the US subsidiary of Singapore-based Del Monte Pacific also owns several well-known pantry staples, such as Contadina tomatoes, College Inn broths, and Joyba bubble teas. The company said Del Monte's international subsidiaries are not included in the proceedings and will continue to operate as normal.
Al Arabiya
18 hours ago
- Business
- Al Arabiya
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 US consumers increasingly bypass its products for healthier or cheaper options. Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses. '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. 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. 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. '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. Grocery inflation also caused consumers to seek out cheaper store brands. And President Donald Trump's 50 percent tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must 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 $4 million annually, according to a company statement. Del Monte said late Thursday that the bankruptcy filing is part of a planned sale of the company's assets.
