Del Monte Foods filed for Chapter 11 bankruptcy this week.
The canned-food giant has secured $912.5 million in debtor-in-possession financing in order to allow it to continue operating until it is sold.
The big picture: Del Monte Foods is nearly 140-years-old and is known for its wide-ranging canned goods, tea brands such as Joyba and other products.
- Bankruptcy court filings show that the company’s assets and liabilities range between $1 billion and $10 billion.
- There are an estimated 10,000 to 25,000 creditors.
Driving the news: The bankruptcy comes after customers are shifting from canned food to other alternatives, especially in light of significant grocery inflation over the past several years.
What they’re saying: “This is a strategic step forward for Del Monte Foods. 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. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success,” said Greg Longstreet, President and CEO of Del Monte Foods.
- He added, “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. I am deeply grateful to our employees, growers, customers and vendors, as well as our lenders for their support in helping us achieve our long-term goals.”
