Canned goods company Del Monte Foods files for Chapter 11 bankruptcy
Del Monte Foods announced this week it is voluntarily filing for Chapter 11 bankruptcy and looking to sell its company to a new owner to help "strengthen" its financial standing.
The 139-year-old canned and packaged foods company, based in Walnut Creek, California, commenced proceedings in the U.S. Bankruptcy Court for the District of New Jersey on July 1, citing broader economic trends for the move.
Del Monte Foods, founded in 1886, is one of the largest producers, distributors and marketers of food products in the U.S. and is the company behind the Del Monte, Contadina, College Inn, Kitchen Basics, JOYBA, Take Root Organics and S&W brands. According to Del Monte, the company built its first cannery in San Francisco in 1907, and by 1909, it had become "the largest fruit and vegetable cannery in the world."
The canned foods industry is navigating a dynamic landscape this year, as President Donald Trump's steel and aluminum tariffs significantly impact production and consumer costs. Steel and aluminum tariffs doubled from 25% to 50% on June 4.
In a statement shared with "Good Morning America," Del Monte Foods President and CEO Greg Longstreet called the bankruptcy filing a "strategic step forward" for the veteran company.
"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," Longstreet said. "With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success."
Del Monte said it has secured a $912.5 million commitment from lenders to fund its ongoing operations for the time being. Some of Del Monte's non-U.S. subsidiaries are excluded from the Chapter 11 proceedings "and continue to operate as usual," the company 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," Longstreet added. "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."
When reached for comment, Del Monte Foods directed ABC News to its earlier press release.
