Del Monte Foods files for bankruptcy

 

138-years-old Del Monte Foods, famous for selling its canned fruits and vegetables, has stapled files for bankruptcy and is wanting to sell.

Last Tuesday, the grocery store said in a statement that it was willingly getting in chapter 11 and is trying to pull off a sale process for all of its assets.

The product lines of the brand offer a plenty of well-liked kitchen staples, including College Inn broths, Contadina canned tomatoes, and its flagship Del Monte brand. We thoroughly evaluated all available options and find out a court supervised sale process appeared to be an excellent possibility to stimulate our turnaround and make a vigorous and enduring Del Monte Foods, stated president and CEO Greg Longstreet.

The new funding of $912 million will push the company ahead to keep afloat as sales process is ongoing, and will help the brand run smoothly as it gets into the peak canning season, said Del Monte. The court document unfolded that Del Monte Foods cited liabilities estimated between $1 billion and $10 billion.

“We’ll position our company in a better place to come along for a long-term success, with an upgraded capital structure, escalated financial position and new ownership,” added Longstreet.

The brand has “met with challenges exacerbated by the dynamic macroeconomic environment,” explicitly consumers are cutting on their spendings and shifting them towards private labels, he said.

Del Monte “says that consumers have cut back on their spending which exposed it to elevated costs leading up to surplus inventory that it has been stockpiling and sought to move off shelves with surged promotional spending,” Sarah Fuss said in a statement, global head of legal and restructuring at Debtwire. Consumers have shifted their preferences away form preservative-laden canned food, seeking healthier alternatives.

Getting its start in 1886, Del Monte constructed its well-known cannery in San Francisco in 1907. The company claims its fruit and vegetable cannery was the largest one in the world in 1907.

 

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