Del Monte Foods initiates bankruptcy proceedings in US: What went wrong with the business? Explained
The company said on July 1, the canned food company Del Monte Foods on Tuesday, the New Jersey, said the 11 bankruptcy procedures.
Del Monte said in a statement, the company entered a restructuring support contract with the loans and then the volunteer department 11 started operations.
The canned food company added that it provides financing $ 912.5 million to support itself through proceedings. Del Monte also said he plans to continue his activities during bankruptcy procedures.
But why did Del Monte, a 135 -year -old company, applied for bankruptcy? Here are possible reasons.
Debts and controversial restructuring
Del Monte Foods realized a debt revision that reminds me of its debt -loaded history last year. The company tried a responsibility management exercise (LME) to restructure a $ 240 million debt.
However, LME was the subject of a case by the leftist lenders, who said that the company said that it defailed a financing agreement of 725 million dollars when the lenders shifted assets.
This legal war, which was solved earlier this year, created a difficulty in Del Monte’s operations.
The company listed the estimated assets and obligations between 1 billion and 10 billion dollars on Tuesday, according to a filing of the New Jersey Bankruptcy Court. The number of credits is estimated between 10,000 and 25,000.
LOSS IN BUSINESS
Del Monte Pacific, Del Monte Foods’s parent company, reported that it did not grow little or growth in sales in 2024 financially. EBITDA dropped 60%. In addition, a year ago, compared to 17 million profits, it became a company that produced a loss with 127 million net losses.
Decreasing demand
With changing times, the food industry has seen a change in consumer behavior. Protected -loaded canned food, packaged fruit juices and demand for fruits and vegetables are gradually decreasing and freshly loves their food leads to a more health -conscious society.
This means that companies such as Del Monte see a lack of demand caused by the closure of a facility in Washington in June.
Del Monte Foods, Broth and Stocks and Joyba tea brands sell tea brands and vegetables brand Del Monte, College Inn is home to names.
