The nearly 140-year-old company is looking at restructuring capital and has secured more than $900 million in debtor-in-possession financing.

https://www.theepochtimes.com/...EECRUxD55fHWywz3w%3D

Del Monte Foods, one of the largest producers and distributors of canned food in the United States, filed for bankruptcy, the company announced on July 2.
Del Monte commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey on July 1 and is looking at selling substantially all of its assets. Del Monte was founded in 1886.
Some of the popular brands sold under Del Monte include Contadina, College Inn, Kitchen Basics, Joyba, and Take Root Organics. The company’s signature products are canned fruits and vegetables.

The Del Monte Foods entities, which filed for bankruptcy, are the U.S. indirect subsidiaries of Del Monte Pacific Limited, and not affiliated with other Del Monte companies around the world, including Fresh Del Monte Produce Inc., Del Monte Canada, Del Monte Asia Pte. Ltd., Conagra/Productos Del Monte, or Del Monte Panamerican.

The U.S. subsidiary is based in California with research facilities in the state. The company employs between 5,000 and 10,000 people.

Del Monte Foods operates production facilities across the United States, as well as in Mexico.

“This is a strategic step forward for Del Monte Foods,” Greg Longstreet, president and CEO of Del Monte Foods, said in an emailed statement to The Epoch Times. “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. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success.”

Del Monte has secured a commitment for $912.5 million in debtor-in-possession financing, inclusive of $165 million in new funding, from certain of its existing lenders, subject to court approval, according to the announcement.

The funding is expected to support the company’s ongoing operations. Certain foreign subsidiaries will continue to operate as usual and are not included in the Chapter 11 proceedings.

Longstreet said: “While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all. I am deeply grateful to our employees, growers, customers and vendors, as well as our lenders for their support in helping us achieve our long-term goals.”

According to a June 3 report from the American Bankruptcy Institute (ABI), there were a total of 2,695 commercial bankruptcy filings in the United States in May, out of which, there were 733 chapter 11 filings. ABI sourced data from Epiq AACER.
The overall commercial filing increased by 8 percent from April. Meanwhile, total bankruptcy filings, which include commercial and noncommercial, totaled 48,218 in May.

“The sharp uptick in overall commercial chapter 11 filings in May 2025 underscores the ongoing economic pressures businesses face, from elevated borrower costs, potential tariff impacts, and geopolitical uncertainty,” said Michael Hunter, vice president of Epiq AACER. “Meanwhile, consumer filings continue to climb yet remain below pre-pandemic levels; however, the resumption of student loan collections and the expiration of the FHA modification programs are likely to drive further increases in filings, particularly through the end of 2025 and into 2026.”

American Bankruptcy Institute Executive Director Amy Quackenboss said that bankruptcy offers a “fresh start” for businesses and families under financial distress.

Maybe they could start by moving out of California.

I’m sorry to see this. We have a lot of their products in our pantry for use if times get hard.

quote:

Originally posted by 229DAK:
Maybe they could start by moving out of California.

That would be a very good start. Beyond that I find store brands on equal products equal in quality at about 75% of the cost.

Sad to hear this. I just love Peaches Del Monte

For better or worse, Del Monte was the big brand that grew & anchored the Monterey area south of SF. Now they're a multi-national conglomerate that's apart of Philippine owned NutriAsia.

Del Monte Foods, the Canned Goods Giant, Files for Bankruptcy

quote:

....
During the coronavirus pandemic, when more people were eating at home, demand rose to record highs, Del Monte said in the filing, and the company committed to higher production levels. Once demand began to ease, Del Monte was left with too much inventory that it was forced to store, write off and “sell at substantial losses.”

The company also said it had carried a large amount of debt since it was acquired in 2014 by Del Monte Pacific Limited, which borrowed to finance the acquisition. Interest rates continued to increase, and the company’s annual cash interest expense has nearly doubled since 2020.

S&P Global analysts downgraded Del Monte’s credit rating last year to B– from B because of poor operating performance. The pressures were compounded by increasingly price-conscious consumers, who are choosing store brands, or private labels, rather than national names like Del Monte.

“About 40 to 45 percent of the total market is serviced by private label players, which are typically at lower prices compared to the branded offerings,” said Arpi Gupta, an analyst at S&P Global.

“We do think that the consumer is stretched right now,” Ms. Gupta said. “Due to all the inflation that these companies have been facing, average retail prices are anywhere between 25 to 30 percent higher compared to about three years ago.”

...

“This is a strategic step forward for Del Monte Foods,” Greg Longstreet, president and CEO of Del Monte Foods, said in an emailed statement to The Epoch Times. “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. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success.”

The company I work went through a very similar “restructuring / recapitalization” process a few years ago, and while challenging to execute, we successfully emerged from it (the “B” words was forbidden. LOL!) in a MUCH better financial position to be competitive and agile in the market we are in.

I always preferred their ketchup to other brands but have not seen it on the shelves in my area for many years. It had a tinge of pineapple flavor that I liked. sorry to see their financial difficulties.

They use to grow a lot of sweet corn and other vegetables in Eastern Illinois. There was a guy in my dorm when I was in college whose dad worked there and the son worked there Summers

This guy would go home every weekend and buy a case of Budweiser. He would then take it to the factory and run the cans through the wrapper machine. He came back every Sunday night with a case of green beans or corn. He never got caught.

^^^

They will have to branch out and reinvent themselves like Campbells did, they went from just canned soup to many other products including snacks, juices and crockpot sauces.

People just aren't eating canned vegetables and fruit like they used to.

quote:

For better or worse, Del Monte was the big brand that grew & anchored the Monterey area south of SF. Now they're a multi-national conglomerate that's apart of Philippine owned NutriAsia.

Del Monte Foods, the Canned Goods Giant, Files for Bankruptcy

That's a shame...

quote:

“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. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success.”

Will the new ownership return it to it's roots?
Make it a US company again?

quote:

Originally posted by 229DAK:
Maybe they could start by moving out of California.

In their specific case that is probably much harder given their industry. I suspect a large percentage of their product is grown here in central valley or central coast of CA, to include tomatoes and peaches.

Grok estimates canned peach products make up 40%-50% of their product and canned tomato-based product another 15-20%. Other vegetables making up estimated 30-35%.

Grok estimates that 80-90% of the peaches they can are produced in California, specifically the central valley (my neck of the woods exactly) and Grok estimates that their various canned tomato products are source from California at a rate of 90-95%.

I know virtually nothing and business in general or ag-business specifically, but I can't imagine it is an easy process to leave California when the vast majority of your product is actually grown here.

Tough situation for them. I remember when Campbell left the area, I think in 96. A very good friend of my brother and I moved to Washington as his dad was with the company and got relocated.

How does this happen? I mean I know but the brand has been around forever, everyone uses their products constantly and for canned food, they taste pretty good. Management needs to be strung up for this.

quote:

Originally posted by patw:
How does this happen? I mean I know but the brand has been around forever, everyone uses their products constantly and for canned food, they taste pretty good. Management needs to be strung up for this.

More and more people are shifting toward fresh fruit and vegetables, not canned. I'm only surprised it only took this long for them to get into trouble like this.

quote:

Originally posted by PASig:
More and more people are shifting toward fresh fruit and vegetables, not canned. I'm only surprised it only took this long for them to get into trouble like this.

I imagine the cost of operating in California due to over-regulation has been increasing for a length of time measured in decades as well.

quote:

Originally posted by PASig:

quote:

Originally posted by patw:
How does this happen? I mean I know but the brand has been around forever, everyone uses their products constantly and for canned food, they taste pretty good. Management needs to be strung up for this.

More and more people are shifting toward fresh fruit and vegetables, not canned. I'm only surprised it only took this long for them to get into trouble like this.

Add to a shift in consumer preferences, the way Mergers & Acquistions are often financed by the acquiring company--through high levels of debt. Bad way to go for a consumer-based company. Clearly, COVID played a role, as probably did bad management/ in not anticipating a post-COVID world.

quote:

Originally posted by patw:
How does this happen? I mean I know but the brand has been around forever, everyone uses their products constantly and for canned food, they taste pretty good. Management needs to be strung up for this.

quote:

During the coronavirus pandemic, when more people were eating at home, demand rose to record highs, Del Monte said in the filing, and the company committed to higher production levels. Once demand began to ease, Del Monte was left with too much inventory that it was forced to store, write off and “sell at substantial losses.”

Between the above idiocy of over-producing based around bad data forecasts, along with the rise of local farmer's markets and people being better home cooks, has spelled doom for canned/preserved foods business. Del Monte's name is worth more than the company itself, I can see during its bankruptcy proceedings the name getting purchased by Amazon or, one of the major super market brands and it becoming a premium house-brand for the new owners.

quote:

Del Monte's name is worth more than the company itself, I can see during its bankruptcy proceedings the name getting purchased by Amazon or, one of the major super market brands and it becoming a premium house-brand for the new owners.

That could be.

Sometimes smaller is better. They became part of a large conglomerate. It would be nice if they were spun off and just went back to canned vegetables and based in the US.