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Del Monte Foods, owned by Singapore-based Del Monte Pacific, has secured $912.5 million in debtor-in-possession financing to continue operations during a planned sale process.
Del Monte Foods has filed for bankruptcy protection as changing consumer habits and economic pressures hit its core business.
Del Monte Foods, the 139-year-old American company known for its canned fruits and vegetables, has filed for bankruptcy protection as changing consumer habits and economic pressures hit its core business.
The company, owned by Singapore-based Del Monte Pacific, has secured $912.5 million in debtor-in-possession financing to continue operations during a planned sale process.
“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,” CEO Greg Longstreet said in a statement.
Based in Walnut Creek, California, Del Monte Foods also owns other well-known brands, including Contadina tomato products, College Inn and Kitchen Basics broths, and Joyba bubble tea. While products like Joyba and the broth lines saw growth in fiscal 2024, it wasn’t enough to offset declining sales of its flagship canned goods.
“Consumer preferences have shifted away from preservative-laden canned food in favour of healthier alternatives,” said Sarah Foss, global head of legal and restructuring at Debtwire.
In addition to changing food trends, grocery inflation has pushed many consumers toward cheaper store-brand products. The company also faced rising costs due to the 50% tariff on imported steel, implemented under President Donald Trump, which increased the price of cans.
Del Monte was further strained by a legal dispute with a group of lenders over its debt restructuring. The lawsuit, settled in May, led to an additional $4 million in annual interest expenses, according to the company.
The bankruptcy filing is part of Del Monte’s broader strategy to sell its assets and streamline its operations.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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