138-Year-Old Iconic Grocery Brand Files for Bankruptcy
Del Monte Foods, 138-Year-Old Canned Goods Giant, Files for Bankruptcy
New York (CNN) — Del Monte Foods, the iconic 138-year-old company known for its canned fruits and vegetables, has filed for Chapter 11 bankruptcy and is seeking a buyer for its assets.
The company announced late Tuesday that it is voluntarily entering bankruptcy proceedings as part of a broader restructuring effort. Del Monte, whose product lineup includes household staples such as Contadina canned tomatoes, College Inn broths, and its signature Del Monte brand, is launching a sale process for all of its business assets.
"After evaluating all available options, we determined that a court-supervised sale process is the best path forward to accelerate our turnaround and build a stronger, more resilient Del Monte Foods," said CEO Greg Longstreet in a statement.
To keep operations running during the transition—including through its crucial canning season—Del Monte has secured $912.5 million in financing. According to court filings, the company’s liabilities are estimated between $1 billion and $10 billion.
Longstreet added that the company’s financial struggles have been intensified by shifting consumer behavior and economic headwinds. “Consumers are spending less and gravitating toward private-label brands, which has significantly impacted our performance,” he said.
Del Monte also cited a decline in demand for canned goods, leading to overstock and increased warehousing costs. Promotional efforts to clear inventory have added financial pressure. “Consumer preferences have moved away from canned foods containing preservatives, in favor of fresher, healthier options,” explained Sarah Foss, global head of legal and restructuring at Debtwire.
Founded in 1886, Del Monte became a fixture in American kitchens and once operated what it claimed was the largest fruit and vegetable cannery in the world, established in San Francisco in 1907. By 1909, the company had become a powerhouse in the food industry.
Now, more than a century later, Del Monte faces its most significant challenge yet, hoping a sale and restructuring can pave the way for a revival.
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