Del Monte Foods Files for Bankruptcy in Search of Buyer

New York, NY – Del Monte Foods, a 138-year-old company well-known for its canned fruits and vegetables, has filed for bankruptcy and is seeking a buyer.

On Thursday, the company voluntarily entered Chapter 11 bankruptcy and is entering a court-supervised sale process for its assets. Del Monte boasts popular products, including College Inn broths and Contadina canned tomatoes, alongside 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.

The company has secured $912.5 million in new funding to ensure normal operations during the sale process, coinciding with peak canning season. According to court documents, Del Monte lists liabilities between $1 billion and $10 billion.

Longstreet added that the company faced challenges exacerbated by a changing economic landscape, including reduced consumer spending and a shift towards private labels. Sarah Foss, global head of legal and restructuring at Debtwire, noted that the company has faced a decline in consumer demand, leading to increased costs from surplus inventory and promotional efforts.

Del Monte was founded in 1886 and opened its famous cannery in San Francisco in 1907, claiming to have operated the world’s largest fruit and vegetable cannery by 1909.