Del Monte Foods declares bankruptcy
Del Monte Foods, the well-known canned fruit brand, has filed for Chapter 11 bankruptcy in the US.
This move comes less than a year after they tried to fix their money problems with a big restructuring, but high debt and weak demand proved too much.
The company reported assets and debts somewhere between $1 billion and $10 billion.
Del Monte focuses on keeping shelves stocked amid challenges
To keep things running during bankruptcy, Del Monte has secured over $900 million in special financing—so your favorite canned fruits aren't disappearing just yet.
Last year's attempts to get back on track included moving assets around and raising new funds, but it also sparked lawsuits from lenders who felt left out.
Even after raising $240 million, cash flow was still tight, leading to this latest step.
For now, Del Monte says it's focused on keeping shelves stocked while working through these challenges.