Canned goods firm Del Monte seeks bankruptcy protection
Del Monte Foods, a 139 -year -old company, known for its best canned fruits and vegetables, is applying for bankruptcy protection for US consumer products for healthier or cheaper options.
Del Monte provided financing of USD $ 912.5 million ($ A1.4 billion A1.4 billion), which will allow it to work normally as sales progresses.
“After a comprehensive assessment of all available options, we have determined that it is the most effective way to accelerate our return of a controlled sales process and create a stronger and permanent del Mounting foods after a comprehensive assessment of all available options,” CEO Greg Longstreet said.
California has Walnut Creek -based Del Monte Foods, Contadina Tomato brand, College Inn and Kitchen Foundations Meat Sound Brands and Joyba Bubble Tea Brand.
The company saw the growth of Joyba and its broth in the financial year of 2024, but it is not enough to balance the weaker sales of Del Monte’s signed canned products.
Sarah Foss, President of the Global Legal and Restructuring in Borr, a financial consultancy, said, “Consumer preferences have moved away from canned foods in favor of healthier alternatives,” he said.
Grocery inflation also caused consumers to call cheaper store brands.
And US President Donald Trump’s 50 percent tariff on imported steel, which entered into force in June, will increase payment prices for Del Mountains and others for boxes.
Del Monte Foods, owned by Singapore’s Del Monte Pacific, was shot with a group of lenders who objected to the company’s debt restructuring plan last year.
According to a company statement, the case was solved in May with a loan that increased the interest expenses of Del Monte annually with an annual USD $ 4 million.
Del Monte said that the bankruptcy file is part of the planned sales of the company’s assets.
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