Del Monte Foods Files for Bankruptcy After 138 Years, Seeks New Ownership
Del Monte Foods, a household name in canned fruits and vegetables for over a century, has filed for Chapter 11 bankruptcy as it looks for a buyer to take over its operations.
The 138-year-old company announced late Tuesday that it will enter a court-supervised sale process, citing a need to restructure and secure its long-term future. The company, which owns popular brands like Contadina, College Inn, and its signature Del Monte label, said the move is aimed at accelerating its turnaround efforts.
“After exploring all our options, we believe this path offers the best chance to strengthen Del Monte for the future,” said CEO Greg Longstreet in a statement.
Del Monte revealed it has secured over $900 million in financing to keep the business running through the transition period, including during the crucial canning season. Despite the bankruptcy filing, the company plans to maintain normal operations for the time being.
Court documents show the company’s liabilities are estimated between $1 billion and $10 billion.
The company attributed its financial difficulties to shifting consumer behavior and broader economic pressures. As more shoppers opt for fresh or private-label foods, demand for traditional canned goods has declined. Del Monte also noted it has been forced to store unsold inventory, which led to increased costs and aggressive promotional efforts to clear products from shelves.
Founded in 1886 and based in California, Del Monte became a major player in the food industry in the early 20th century, operating what was once the world’s largest fruit and vegetable cannery. Its bankruptcy marks a significant moment in the changing landscape of American grocery brands.
