Del Monte Foods files for Chapter 11 bankruptcy protection, seeks buyer to support strategic turnaround
The canned food giant has entered bankruptcy to restructure operations and pursue a sale amid mounting financial and market pressures.
USA – Del Monte Foods, a US-based producer of fruit and vegetable products, has filed for Chapter 11 bankruptcy protection and is actively seeking a buyer as part of a broader strategic turnaround plan.
The company, which operates under the ownership of Singapore and Philippines-listed Del Monte Pacific, announced the move as a step to accelerate recovery and ensure long-term sustainability.
Greg Longstreet, President and CEO of Del Monte Foods, said in a statement, “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.”
As part of the bankruptcy process, the company has secured debtor-in-possession (DIP) financing totaling US$912.5 million from existing lenders, including US$165 million in new capital, subject to court approval.
The filing was submitted to the US Bankruptcy Court for the District of New Jersey.
In a clarification, parent company Del Monte Pacific stated that the Chapter 11 proceedings apply solely to Del Monte Foods in the United States.
Its subsidiaries outside the US, including operations in Latin America and Asia, are not part of the bankruptcy and continue to operate normally. Del Monte Pacific confirmed that Del Monte Philippines remains unaffected.
The bankruptcy follows ongoing challenges faced by Del Monte Foods, compounded by macroeconomic pressures. While the company did not signal the bankruptcy in earlier communications, it recently announced the closure of its fruit products manufacturing plant in Yakima, Washington, citing shifts in consumer demand.
Del Monte Foods’ portfolio includes several well-known brands such as Joyba teas, College Inn broths, Contadina tomatoes, S&W canned fruits and vegetables, Take Root Organics, and Kitchen Basics, which was acquired from McCormick & Co. in 2022.
Del Monte Foods has entered into a restructuring support agreement (RSA) with a group of creditors to initiate a value-maximising sale process for all or most of its assets.
“With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success,” Longstreet noted.
Meanwhile, Del Monte Pacific reported that its net investment value in Del Monte Foods stood at US$579 million as of the end of January 2025.
In its third-quarter results for the 2025 financial year, Del Monte Pacific posted a 3% sales increase to US$1.9 billion.
However, EBITDA fell 13% to US$134.9 million, and the company recorded a net loss of US$92.2 million, compared to a US$50.6 million loss a year earlier.
For fiscal 2024, Del Monte Pacific reported flat revenue of US$2.4 billion, a 60% drop in EBITDA to US$133.2 million, and a net loss of US$127 million, reversing a US$17 million profit from the prior year.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
