Del Monte Foods, a fixture on American grocery store shelves for generations, filed for Chapter 11 bankruptcy protection earlier this week, marking a dramatic turn for the 138-year-old company.
The company, which has long been distributed through major retailers like Walmart and Target, initiated voluntary bankruptcy proceedings following years of weakening sales, rising debt, and significant changes in the consumer food landscape, The US Sun reported.
Founded in 1886 in California, Del Monte Foods became one of the most recognized names in canned fruits and vegetables in the United States. The company has maintained a presence in homes nationwide for well over a century, with products commonly found in supermarket staples.
The company submitted its bankruptcy filing Tuesday in the U.S. Bankruptcy Court for the District of New Jersey. A court document estimates the company’s debts to be between $1 billion and $10 billion.
CEO Greg Longstreet referred to the restructuring decision as a "strategic step forward" for the company. According to Longstreet, Del Monte is seeking a buyer as it aims to strengthen its financial position and restructure its operations under court supervision.
The company cited numerous factors behind its financial distress. These include a downturn in private label sales, ongoing supply chain disruptions, and increasingly expensive operational costs.
Shifting consumer habits, inflationary pressure, and an unfavorable tariff environment compounded Del Monte's challenges, especially with key inputs like steel and aluminum used in packaging. Tariffs further strained the company’s ability to control costs.
Additionally, overspending on promotions and overcommitting to production volumes further weakened its profit margins, according to Chief Restructuring Officer Jonathan Goulding. The cumulative impact left Del Monte struggling to sustain its business model.
The food manufacturer struggled particularly in 2023 and 2024, when sales came in below company expectations. Retail partners increased their focus on private store brands to remain competitive, reducing shelf space for legacy labels like Del Monte's.
Efforts were made to regain financial stability in prior years, including layoffs and production facility closures. Del Monte also began a debt overhaul in the year before filing but was ultimately unable to reverse its fortunes.
Despite these cost-cutting moves, the company’s financial position continued to weaken. Recent years brought greater volatility in input prices and an increase in promotional spending required to stay visible in an overcrowded market.
To sustain operations during the bankruptcy process, Del Monte secured $912.5 million in debtor-in-possession financing from existing lenders. This funding will allow Del Monte to maintain regular operations and preserve its supply to retail partners during restructuring efforts.
According to court documents, the company also filed several initial motions seeking approval to continue providing their products to consumers without interruption. These filings are typical for companies undergoing bankruptcy reorganization.
"While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years,” Longstreet said. He reaffirmed the company’s dedication to offering nutritious food and emphasized the company’s long-term mission.
As part of the Chapter 11 proceedings, Del Monte intends to pursue a sale process under court oversight. The goal, according to management, is to attract new ownership that would offer the capital and strategic resources necessary for lasting success.
Longstreet said the sale process will also facilitate structural improvements needed to position Del Monte more competitively in the future. “With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success,” he noted.
Del Monte’s bankruptcy marks it as the fourth food and beverage company in 2025 to pursue court-supervised reorganization, according to data from analytics firm Debtwire. This signals broader trends impacting the packaged food sector.
The filing comes amid an ongoing wave of financial instability among consumer-oriented companies. Many food producers have struggled to rebound from pandemic-era shifts in buying behavior and supply constraints.
As grocery shoppers refocus on affordability, retailers have increasingly favored in-house brands, further pressuring traditional names like Del Monte. This pivot toward store-brand products has altered the competitive balance in the legacy food sector.
Though the process of restructuring is just beginning, Del Monte’s leadership remains hopeful. “We determined a court-supervised sale process is the most effective way to accelerate our turnaround,” Longstreet said, reflecting cautious optimism.
