Del Monte Foods, the iconic producer of canned fruits and vegetables for nearly 140 years, filed for Chapter 11 bankruptcy protection late Tuesday and announced it will seek a buyer for all of its assets, as declining consumer demand and shifting preferences toward healthier foods have pressured the company.
The Walnut Creek, California-based company secured $912.5 million in debtor-in-possession financing to maintain operations during the court-supervised sale process. The filing estimates the company’s assets and liabilities at between $1 billion and $10 billion.
President and CEO Greg Longstreet said the company determined that “a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods.”
The company has struggled with declining consumer demand as preferences shift away from canned foods containing preservatives toward healthier alternatives. According to Sarah Foss, global head of legal and restructuring at Debtwire, Del Monte has faced increased costs from “surplus inventory that it has had to warehouse and attempt to move off shelves with increased promotional spending” due to declining consumer demand.
President Donald Trump also doubled tariffs on steel and aluminum imports, impacting canned goods producers like Del Monte.
Related: Trump Tariffs Hurt Nearly 80% of US Manufacturers
The company joins three other food and beverage producers that have sought bankruptcy protection this year. Beyond its flagship canned fruit and vegetable lines, Del Monte also produces College Inn broth products and Contadina tomato products.
The bankruptcy filing comes less than a year after Del Monte executed a controversial debt restructuring that sparked litigation with lenders over a $725 million financing agreement.
Despite the bankruptcy filing, Del Monte said it expects no interruption to customer service and will continue normal operations during the sale process. The company’s non-US subsidiaries are not included in the Chapter 11 proceedings.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
So it was Trump’s June 2025 tariffs on aluminum and steel, NOT that bone-headed debt restructuring in 2024, inflation (let’s go Brandon!) or changing consumer tastes that canned the company. TDS is such a tragedy. But it takes a pre-existing low IQ for it to manifest… It’s a long shot, but I hope you and #doggintrump get better.