Del Monte Files for Bankruptcy Amid Sales Decline
2 min read
JULY 03,2025
Walnut Creek, California — Del Monte Foods, the 139-year-old canned goods giant, has filed for Chapter 11 bankruptcy protection. This move aims to restructure and sell the company while it continues normal operations.
The brand, famous for its canned fruits and vegetables, is facing growing pressure. Consumers are shifting toward healthier and more affordable options, leading to a decline in Del Monte’s core product sales.
Del Monte $912.5 Million in Funding Secured
These secured $912.5 million in debtor-in-possession financing. This funding will allow it to operate normally during the bankruptcy process. Employees will be paid, and product distribution will continue.
“After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround,” said CEO Greg Longstreet.
Del Monte Popular Brands Show Mixed Results
While the classic canned goods category has declined, some brands showed growth. These include:
- Joyba bubble tea
- Contadina tomato products
- College Inn and Kitchen Basics broths
However, the growth from these products was not enough to offset the losses from the core Del Monte line.
Key Challenges: Tariffs, Lawsuits, and Inflation
It has faced several external pressures. One major challenge is the 50% U.S. tariff on imported steel. This policy, enacted under former President Donald Trump, has driven up the cost of cans.
In 2023, a group of lenders filed a lawsuit opposing a debt restructuring. The case was settled in May 2024. However, the outcome increased the company’s interest expenses by $4 million annually.
Looking Ahead: Planned Sale of Assets
The bankruptcy filing is part of a planned sale of assets. Its parent company, Del Monte Pacific Ltd. based in Singapore, hopes the sale will lead to a more stable future for the brand.
Why It Matters
This development reflects broader trends in the food industry. Consumers are turning away from preservative-laden, canned products in favor of:
- Fresh or organic foods
- Sustainable packaging
- Store-brand or budget alternatives
These struggles show how even legacy brands must evolve to meet modern expectations. NOWTREND
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