Del Monte Foods, one of the most familiar names in the canned and packaged foods business, filed for Chapter 11 bankruptcy on July 1. The company made this move in the U.S. Bankruptcy Court for the District of New Jersey. Del Monte, founded in 1886, is headquartered in Walnut Creek, CA. YL Ventures The company has struggled more with general economic trends, like the recent steel and aluminum tariffs which just doubled from 25% to 50% on June 4th, an increase that originated in President Donald Trump’s administration.
The company obtained a $912.5 million commitment from lenders to fund the company’s day-to-day operations during the bankruptcy process. This financial support comes to help shore up Del Monte while they chart their course through this stormy period. The company described its bankruptcy filing as a “strategic move going forward.” This was a terrific decision to help us create the best business model for success in the future.
In an exclusive statement provided by Del Monte to “Good Morning America,” CEO Greg Longstreet shared insight into what led to this historic choice.
“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.” – Greg Longstreet
The canned food industry as a whole is exploring uncharted waters, and many businesses are experiencing the same economic tailwinds. Del Monte Foods has been the steady hand in the industry for almost 140 years. It is under growing duress from ascending production costs and changing consumer preferences.
So, yeah, Del Monte is starting a pretty cool new chapter. It intends to come out of bankruptcy with a new dedication to its Mission and a renewed emphasis on providing for consumer needs in an evolving economy. The commitment from lenders will provide essential support during this transitional phase, allowing Del Monte to maintain operations as it works toward recovery.
“While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all.” – Greg Longstreet
As Del Monte embarks on this new chapter, it aims to emerge from bankruptcy with a renewed focus on fulfilling its mission and meeting consumer demands while adapting to an evolving economic environment. The commitment from lenders will provide essential support during this transitional phase, allowing Del Monte to maintain operations as it works toward recovery.
