Del Monte Foods, a 139-year-old company regarded for its canned fruits and vegetables, is seeking bankruptcy protection as consumer demand for healthier and more affordable options takes its toll.
As inflation pushes consumers to seek cheaper alternatives and store brands, it has dealt a blow to the well-established Del Monte brand. Further, tariffs on steel and aluminum have made price increases unsustainable. The company has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as it proceeds with a court-supervised sale of its assets, which has been deemed the best way to proceed.
“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.
