Del Monte Foods, a 138-year-old company renowned for its canned fruits and vegetables, has filed for bankruptcy and is seeking a buyer. The company, based in Walnut Creek, California, announced that it is entering voluntary Chapter 11 proceedings and has initiated a court-supervised sale process for its assets. Del Monte’s product lines include College Inn broths, Contadina canned tomatoes, and its flagship Del Monte brand.
According to CNN, Del Monte has secured $912.5 million in new funding to maintain operations during the sale process, which coincides with the peak canning season. The company listed liabilities estimated between $1 billion and $10 billion. CEO Greg Longstreet stated that the bankruptcy is a strategic step to accelerate the company’s turnaround and create a stronger Del Monte Foods. He cited challenges from a dynamic macroeconomic environment, including reduced consumer spending and a shift towards private labels.
Del Monte has entered into a restructuring support agreement with its lenders and intends to continue operations throughout the bankruptcy. Certain non-U.S. subsidiaries are not included in the Chapter 11 proceedings and will operate as usual.
Del Monte’s financial struggles are partly due to a costly buildup of excess inventory during the COVID-19 pandemic and rising interest rates. The company has been carrying substantial debt since its acquisition by Del Monte Pacific Ltd. (DMPL) from a group led by KKR. The acquisition was funded by debt placed on Del Monte’s balance sheet, leading to increased cash interest expenses from $66 million in 2020 to $125 million in 2025.
Del Monte’s bankruptcy filing follows a controversial debt restructuring last year, which led to a lawsuit by lenders who claimed the company defaulted on a $725 million financing agreement. The company plans to continue serving customers during the sale process, supported by financing and cash from ongoing operations.
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