WASHINGTON (dpa-AFX) - Del Monte Foods, the 139-year-old American pantry staple known for its canned fruits and vegetables, has filed for Chapter 11 bankruptcy protection as shifting consumer preferences and rising costs weigh on its business.
The California-based company announced it will pursue a court-supervised sale of its assets in hopes of revitalizing operations and ensuring long-term stability.
'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 CEO Greg Longstreet.
Del Monte has secured $912.5 million in debtor-in-possession financing to keep the company operating during the restructuring, including through its critical canning season.
Despite seeing growth in newer brands like Joyba bubble tea and its broth lines, sales of Del Monte's traditional canned products have steadily declined as consumers increasingly opt for fresher, healthier alternatives or private-label store brands.
According to analysts, the company also faced headwinds from inflation and former President Donald Trump's 50% tariff on imported steel, which raised production costs. Last year, a lawsuit from lenders over a contested debt restructuring further strained Del Monte's finances, ultimately raising annual interest expenses by $4 million after the settlement.
Del Monte, owned by Singapore-based Del Monte Pacific, listed liabilities between $1 billion and $10 billion in its court filings. The company says operations will continue as usual while it navigates the bankruptcy process and searches for a new buyer to support its future.
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