Del Monte Foods Files for Chapter 11 Bankruptcy

Del Monte Foods, the U.S. fruit and vegetable canning giant with nearly 140 years of history, filed for Chapter 11 bankruptcy protection on July 1, according to reports.

An increasing number of U.S. consumers have abandoned Del Monte’s canned fruit products in favor of either healthier fresh options or more affordable canned alternatives sold under store brands. Additionally, a new 50% tariff on imported steel, which took effect in June, has driven up costs for companies like Del Monte Foods that rely on metal packaging and related materials.

Del Monte Foods Corporation II Inc. is a subsidiary of Del Monte Pacific Limited and operates several brands in the United States. In addition to Del Monte, known for its canned peaches, canned vegetables and fruit cups, the company also owns Contadina canned tomatoes, College Inn broths, Kitchen Basics, Joyba bubble tea, Take Root Organics and S&W, which offers canned beans and vegetables.

Del Monte Pacific Limited is currently evaluating the financial implications of selling its U.S. subsidiary. As of the end of January, its net investment in Del Monte Foods was valued at $579 million. In addition, Del Monte Pacific Limited and its affiliated companies are owed $169 million in outstanding payments from retailers and distributors.

Del Monte Foods has reached a restructuring support agreement with a group of lenders and voluntarily filed for Chapter 11 bankruptcy protection in a New Jersey court. The company stated that the filing is part of a broader plan to sell certain assets.

Image: Pixabay

This article was translated from Chinese. Read the original article.