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Del Monte Foods, the longtime provider of canned fruits and vegetables, announced Monday it’s filing for bankruptcy and will be seeking a buyer. The nearly 140-year-old company will be entering Chapter 11 proceedings as part of a restructuring agreement with its lenders.
President and CEO Greg Longstreet stated that this court-supervised sale process is the most effective way to restructure and strengthen the company for the future. Del Monte has secured $912.5 million in funding from lenders to maintain operations during this process.
Court filings indicate Del Monte has between $1 billion and $10 billion in both assets and liabilities. The company aims to sell all, or most, of its assets and will prioritize the best offer received.
This bankruptcy filing reflects a larger trend in the food and beverage sector, with Del Monte being the fourth company to file for Chapter 11 this year. Industry experts point to shifting consumer preferences away from canned goods toward fresher options as a contributing factor. This shift has led to increased costs for Del Monte due to surplus inventory and promotional spending.
The bankruptcy filing comes after several years of challenges for Del Monte, including layoffs and downsizing efforts.