Del Monte, the 139-year-old canned food brand behind your peaches, peas, and pineapple slices, just filed for bankruptcy.
Here is everything you need to know.
What Happened to Del Monte?
After more than a century in American pantries, Del Monte Foods is calling in the lawyers. The canned food company filed for Chapter 11 bankruptcy on July 1, aiming to restructure its massive debt and find a buyer to keep operations going. Court documents filed in New Jersey show Del Monte plans to stay open during the sale process, keeping products like fruit cups and green beans on shelves — at least for now.
“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,” said President and CEO Greg Longstreet in a statement.
Why Did Del Monte Go Bankrupt?
The company racked up $1.23 billion in long-term secured debt. At the same time, Americans turned away from canned goods in favor of fresh, and “clean label” foods. It’s a shift Del Monte couldn’t keep up with — and the bills finally came due. “Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,” Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy told CNBC.
Is This the End of Del Monte Products?
Your diced tomatoes and fruit cocktail aren’t going anywhere just yet. Del Monte secured more than $912.5 million in financing to keep the business running while it looks for a buyer. The company says it’s committed to fulfilling orders and keeping operations stable during the restructuring.
What’s Being Cut Behind the Scenes?
Before filing, Del Monte shut down a cannery and two distribution centers in Washington state, cutting dozens of jobs. More cuts could follow if a buyer pushes for leaner operations. It’s part of a wider effort to make the brand more appealing to potential investors — or private equity firms sniffing around.
