139‑year‑old Del Monte Foods seeks buyer after filing bankruptcy
What's the story
Del Monte Foods, a 139-year-old staple in the grocery aisle, has filed for Chapter 11 bankruptcy. The company is now looking for a buyer. Del Monte's product range includes popular kitchen staples such as College Inn broths and Contadina canned tomatoes, in addition to its flagship Del Monte brand.
CEO statement
Court-supervised sale process will help turnaround the company
Greg Longstreet, President and CEO of Del Monte Foods, said the decision to file for bankruptcy was made after careful consideration of all options. He said that a court-supervised sale process is the most effective way to speed up their turnaround and build a stronger Del Monte Foods. The company has secured $912.5 million in new funding to stay afloat during this period.
Financial outlook
Del Monte Foods's liabilities between $1B and $10B
Del Monte Foods has listed liabilities between $1 billion and $10 billion in court documents. Longstreet said an improved capital structure, enhanced financial position, and new ownership would better position the company for long-term success. He also acknowledged that the company has faced challenges due to a dynamic macroeconomic environment with consumers cutting back on spending and shifting toward private labels.
Market shift
Consumer demand has declined, leading to higher costs
Del Monte Foods has acknowledged a decline in consumer demand, leading to higher costs due to excess inventory. The company has had to warehouse and promote these products more aggressively. "Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire.
Company legacy
Del Monte Foods seeks buyer for its business
Founded in 1886, Del Monte Foods built its famous cannery in San Francisco in 1907. By 1909, the company was operating the world's largest fruit and vegetable cannery. Now, as part of a planned sale process for all its assets, Del Monte Foods is looking to secure a buyer who can take over the business and steer it toward long-term success.