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Grocery store mainstay, with a history of 138 years, submits bankruptcy petition

Struggling canned food giant Del Monte Files for Bankruptcy, Seeking New Ownership After 138 years in the business.

Venerable grocery store, with a history spanning 138 years, submits bankruptcy petition
Venerable grocery store, with a history spanning 138 years, submits bankruptcy petition

Grocery store mainstay, with a history of 138 years, submits bankruptcy petition

Del Monte Foods, a 138-year-old company renowned for its canned fruits and vegetables, has filed for Chapter 11 bankruptcy on July 1, 2025, due to significant challenges with debt restructuring and financial pressures. The company, best known for brands like College Inn broths, Contadina canned tomatoes, and the flagship Del Monte brand, has initiated a court-supervised sale process of all or most of its assets to find a buyer, aiming to maintain operations and serve customers during the transition.

The bankruptcy filing comes as a result of complex debt restructuring issues, creditor disputes, and financial strain. Del Monte’s recent efforts to overhaul its debt involved controversial restructuring actions, such as "drop-down transactions" prioritizing certain lenders over others, which led to lawsuits from creditors claiming violations of financing agreements totaling $725 million. The company also recently chose to skip a payment to lenders as part of a settlement related to debt restructuring controversies.

To support its operations during bankruptcy, Del Monte Foods has secured $912.5 million in debtor-in-possession (DIP) financing, including $165 million in new funding from existing lenders. This financing is intended to provide liquidity throughout the sale process. The company plans a "going-concern" sale of its assets under a Restructuring Support Agreement with lenders. Unlike liquidation, this approach aims to preserve the brand’s operational structure, customer base, and workforce to maximize value for creditors and stakeholders.

Del Monte Foods will continue to operate as normal during the sale process, emphasizing continuity for customers and employees. Some non-U.S. subsidiaries are not part of the bankruptcy proceedings and continue regular operations. The bankruptcy filing estimates Del Monte Foods' assets and liabilities between $1 billion and $10 billion, with thousands of creditors involved.

Del Monte Foods' President and CEO, Greg Longstreet, characterizes the bankruptcy filing and sale as a "strategic step forward" to accelerate the company’s turnaround and create a stronger, enduring Del Monte Foods brand. Longstreet mentioned that the company has faced challenges intensified by a dynamic macroeconomic environment, specifically consumers cutting back on their spending and a growing shift toward spending on private labels. With an improved capital structure, enhanced financial position, and new ownership, the company will be better positioned for long-term success.

The company built its famous cannery in San Francisco in 1907 and operated the largest fruit and vegetable cannery in the world by 1909. Del Monte Foods remains committed to maintaining its legacy and serving its customers during this transition. The company is looking for a buyer and plans to use a court-supervised sale process to accelerate its turnaround.

  1. Del Monte Foods' financial struggles have led to the exploration of alternative solutions in the food industry, seeking a buyer to provide the necessary support and financially stabilize the company.
  2. The bankruptcy filing for Del Monte Foods has implications beyond just the food business, involving complex debates around debt restructuring, creditor disputes, and the role of finance in the food industry's future.

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