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Del Monte Foods, the 138-year-old canned goods giant, has filed for Chapter 11 bankruptcy protection. The company, known for its namesake canned fruits and vegetables, along with brands like College Inn and Contadina, is actively seeking a buyer.
In a statement released late Tuesday, Del Monte President and CEO Greg Longstreet explained that the court-supervised sale process is the best way to expedite the company’s turnaround and ensure its long-term viability. He cited a challenging economic climate, decreased consumer spending, and the increasing popularity of private label brands as contributing factors to the company’s current financial difficulties. This shift in consumer preference towards fresher alternatives has left Del Monte with excess inventory and increased costs.
Despite the bankruptcy filing, Del Monte has secured $912.5 million in financing to maintain operations during the sale process, which is crucial as the company enters its peak canning season. Court documents indicate the company’s liabilities fall between $1 billion and $10 billion. Longstreet expressed confidence that with a restructured financial foundation and new ownership, Del Monte is poised for future success.
Founded in 1886, Del Monte opened its landmark San Francisco cannery in 1907 and, by 1909, claimed to operate the world’s largest fruit and vegetable cannery.