Del Monte Foods, a company with a 139-year history known for its canned fruits and vegetables, has filed for bankruptcy protection as more U.S. consumers turn to healthier or more affordable alternatives.
The company has secured $912.5 million in debtor-in-possession financing, allowing it to continue normal operations while a sale process moves forward.
CEO Greg Longstreet stated that after carefully reviewing all options, a court-supervised sale is the best way to speed up the company’s turnaround and build a stronger, more sustainable business.
Based in Walnut Creek, California, Del Monte also owns brands like Contadina tomatoes, College Inn and Kitchen Basics broths, and the Joyba bubble tea line. While Joyba and broth products have seen sales growth in fiscal 2024, it has not been enough to counteract declines in Del Monte’s core canned food products.
Industry expert Sarah Foss, global head of legal and restructuring at Debtwire, explained that consumer tastes have shifted away from canned foods containing preservatives toward healthier choices.
Rising grocery prices have also led shoppers to opt for lower-cost store brands. Additionally, tariffs on imported steel implemented in June are expected to increase the cost of cans, putting further pressure on companies like Del Monte.
Owned by Singapore-based Del Monte Pacific, the company faced a lawsuit last year from lenders who opposed its debt restructuring plan. This dispute was resolved in May with a new loan that raised Del Monte’s annual interest expenses by $4 million.
Del Monte confirmed on Tuesday that its bankruptcy filing is part of a planned process to sell its assets.
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