Free Trial

Del Monte, the 139-year-old canned fruits and vegetables company, seeks bankruptcy protection

In this June 22, 2006 file photo, Del Monte canned vegetables are seen for sale in Berkeley, Calif. (AP Photo/Ben Margot, file)

Key Points

  • Del Monte Foods, the 139-year-old canned fruits and vegetables company, filed for bankruptcy protection as consumers increasingly favor healthier or cheaper alternatives over its canned products.
  • The company secured $912.5 million in debtor-in-possession financing to maintain operations during a court-supervised sale process aimed at accelerating its turnaround.
  • Rising costs from grocery inflation and a 50% steel tariff, along with shifting consumer preferences toward less processed foods, weakened Del Monte’s core canned business despite growth in brands like Joyba bubble tea and Kitchen Basics broth.
  • The filing is part of a planned asset sale, following last year’s settlement of a lenders’ lawsuit that increased Del Monte’s interest expenses by $4 million annually.
  • Five stocks we like better than .

Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as U.S. consumers increasingly bypass its products for healthier or cheaper options.

Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses.

“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,” CEO Greg Longstreet said in a statement.

Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand.

The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products.

“Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,” said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy.

Grocery inflation also caused consumers to seek out cheaper store brands. And President Donald Trump’s 50% tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans.

Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company’s debt restructuring plan. The case was settled in May with a loan that increased Del Monte’s interest expenses by $4 million annually, according to a company statement.

Del Monte said late Tuesday that the bankruptcy filing is part of a planned sale of company’s assets.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

2025 Gold Forecast: A Perfect Storm for Demand Cover

Unlock the timeless value of gold with our exclusive 2025 Gold Forecasting Report. Explore why gold remains the ultimate investment for safeguarding wealth against inflation, economic shifts, and global uncertainties. Whether you're planning for future generations or seeking a reliable asset in turbulent times, this report is your essential guide to making informed decisions.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

3 Cheap Growth Stocks Set to Explode This Summer
The Next NVIDIA? Quantum Computing Stocks Set for Explosive Growth
5 Stocks to BUY NOW in July 2025

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines