Del Monte Foods, a staple of American grocery shelves for more than a century, has filed for Chapter 11 bankruptcy protection and announced plans to sell “all or substantially all” of its assets in a bid to stabilize its finances.
In a filing with the U.S. Bankruptcy Court in New Jersey, the company listed between $1 billion and $10 billion in both assets and liabilities. The move, company officials said, is part of a broader restructuring strategy to ensure Del Monte’s long-term viability.
“This is a strategic step forward for Del Monte Foods,” CEO Greg Longstreet said in a statement. “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.”
Founded in 1886, the company employs approximately 2,780 people and operates four plants—two in the United States and two in Mexico. It is best known for its canned fruits, vegetables, and packaged meals.
As part of the bankruptcy proceedings, certain lenders have agreed to provide $912.5 million in financing to support the company through the Chapter 11 process and facilitate the sale of its assets.
Jonathan Goulding, Del Monte’s chief restructuring officer, emphasized the company’s longstanding impact on the American food industry.
“The Del Monte business has been a cornerstone of American grocery stores for more than 130 years,” Goulding said in a court declaration.
In its filings, the company cited several macroeconomic pressures including inflation, rising interest rates, and shifting consumer behavior. Although Del Monte saw increased consumer demand in 2022 and 2023, executives acknowledged they overestimated demand for 2024.
“Unfortunately, consumer demand declined during fiscal year 2024,” the company stated. “The company’s outsized production commitments caused it to incur increased promotional spending to move excess inventory, as well as incremental warehousing and logistics costs to manage the surplus inventory.”
The company also blamed high levels of debt and surging interest rates for its financial instability. Del Monte reported that its average funded debt exceeded $1 billion over several years, and interest expenses skyrocketed in 2023 and 2024.
“The sharp rise in interest rates in 2023 and 2024 increased the company’s annual cash interest expense to approximately $125 million,” court documents stated, noting that the figure outpaced its earnings before interest, taxes, depreciation, and amortization.
Despite its financial turmoil, Del Monte expressed confidence in its path forward and said it remains committed to preserving its brand during the restructuring process.
