Posted on 07/03/2025 6:44:57 AM PDT by Diana in Wisconsin
Del Monte Foods, the 138-year-old company best known for its canned fruits and vegetables, has filed for bankruptcy and is looking for a buyer.
Late Tuesday, the company announced it was voluntarily entering Chapter 11 and is going through a sale process for all of its assets. Among the company’s product lines are a number of well-known kitchen staples, including College Inn broths and Contadina canned tomatoes, as well as its flagship Del Monte brand.
“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,” said President and CEO Greg Longstreet in a statement.
Del Monte said it secured $912.5 million in new funding that will allow the company to remain afloat during the sale process and will keep the company operating as normal as it enters the peak canning season. The company listed liabilities estimated between $1 billion and $10 billion, according to court documents.
He said that the company has “faced challenges intensified by a dynamic macroeconomic environment,” notably consumers cutting back on their spending and a growing shift toward spending on private labels.
Del Monte “says that consumer demand has declined, causing it to incur increased costs related to surplus inventory that it has had to warehouse and attempt to move off shelves with increased promotional spending,” according to Sarah Foss, global head of legal and restructuring at Debtwire. “Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives.”
Del Monte got its start in 1886 and built its famous cannery in San Francisco in 1907. The company claims that it operated the largest fruit and vegetable cannery in the world by 1909.
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I know I’m stretching the principle a bit to make a point, but my point is that all businesses are on the road to non-viability. The only question that remains is when?
Oh, you betcha. ‘Sworn to Cheap Prices, Loyal To None!’
I have that Tattoo! j/k ;)
When Kwik Trip had Butter on sale for $2.99/# there was a limit of four. BUT - there are THREE Kwik Trips within driving distance, so I really stocked up.
I’ve always shopped that way. And when the kids were small, they knew the ‘Wrath of Mom’ would come down upon their heads if they TOUCHED her ‘Aldi Quarter’ in the ashtray in the car. ;) (For the shopping cart)
Many professional Chefs swear by the San Marzano tomatoes for cooking. I have four San Marzano plants in the garden mix this season.
https://www.mashed.com/616705/how-lidia-bastianich-makes-the-perfect-tomato-sauce/
How fun for you! :)
Green Giant has plenty of stuff in the frozen foods section DelMonte nothing so I imagine Green Giant will be fine!! I switched from canned to frozen decades ago!!!
“Job growth was heavily concentrated in state and local government and in healthcare. A number of other sectors, including manufacturing and professional and business services, were flat or shed jobs.” - WSJ
No the type of job growth to be applauded.
I think they are going out of business due to being bought by a leverage buyout company / private equity that borrows the money from a bank using the company as collateral so the company is now full of debt and the leverage buyout company sells off the profitable parts of the company and gets tax write-offs from the remaining bits. Think Sears & Kmart where one guy has destroyed both instead of being smart enough to be as big as Amazon.
bttt
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