NEW YORK — Del Monte Foods, the iconic 138-year-old company known for canned fruits and vegetables, has filed for Chapter 11 bankruptcy protection as it seeks a buyer to salvage its operations amid mounting financial pressures and shifting consumer preferences.
The company voluntarily initiated the process late Tuesday, stating that a court-supervised sale of its assets is the “most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods,” according to CEO Greg Longstreet. The move includes all of its well-known brands, such as Del Monte, College Inn broths, Contadina tomato products, and Joyba bubble tea.
In its bankruptcy filings, Del Monte listed liabilities estimated to be between $1 billion and $10 billion. The company has secured $912.5 million in financing to maintain operations through the peak canning season, while a separate restructuring agreement with lenders provides an additional $165 million in debtor-in-possession financing.
“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. “With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success,” he added.
Once a staple of American pantries, Del Monte has struggled with changing market dynamics. Demand surged during the pandemic, prompting the company to ramp up production. However, as at-home consumption waned, Del Monte was left with excess inventory and incurred losses while attempting to sell it.
The bankruptcy comes as rising borrowing costs, tariffs on imported steel, and a shift in consumer preferences toward private-label brands and fresh food have strained operations. Del Monte’s canned products have also suffered from a perception gap, as shoppers increasingly look for healthier, preservative-free options.
“Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,” said Sarah Foss, global head of legal and restructuring at Debtwire.
Analysts at S&P Global noted that nearly half of the shelf-stable food market is now captured by lower-cost private labels. “We do think that the consumer is stretched right now,” said Arpi Gupta of S&P, pointing to retail prices that are up as much as 30 percent compared to 2022.
Del Monte Foods was founded in 1886 and operated the world’s largest fruit and vegetable cannery in San Francisco by 1909. It is currently owned by Del Monte Pacific Limited, which took on significant debt to acquire the U.S. business in 2014.
Despite the challenges, the company emphasized its continued commitment to food access and nutrition.
