Posted on 07/02/2025 12:02:02 PM PDT by DFG
Del Monte Foods, whose canned vegetables and fruit have long been a staple on grocery store shelves, announced Monday that it has filed for bankruptcy and will seek a buyer.
The nearly 140-year-old company is entering Chapter 11 proceedings as part of a restructuring support agreement (RSA) with its lenders.
"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," Greg Longstreet, president and CEO of Del Monte Foods, said in a statement.
Del Monte did not immediately respond to CBS MoneyWatch's request for comment.
The canned-goods producer, based in Walnut Creek, California, said it has secured a commitment for $912.5 million from its lenders that will help fund the company throughout the going-concern sale process and allow it to continue operating.
Del Monte has between $1 billion to $10 billion in both estimated liabilities and assets, according to its court filing with the U.S. Bankruptcy Court for the District of New Jersey. The sale, the California-based company said in its statement, will involve "all or substantially all of the Company's assets." In its search for a new buyer, Del Monte said it would prioritize the highest or best offer.
Changing consumer preferences
Del Monte is the fourth company in the food and beverage sector to file for Chapter 11 according to data from Debtwire, a data analytics firm.
(Excerpt) Read more at cbsnews.com ...
should ve been more evil and they would survive like chiquita
RFK?
Almost a billion for debtor in possession financing to get it to a sale?
Makes me sad.
How did this happen, after all these years of successful marketing? Who’s in charge of budget proposals?
Is this bankruptcy a business method, intended to change priorities, but not lay off lots of loyal employees?
I can’t believe it. I’m from the East Bay. Didn’t know they were based in WC.
“Changing consumer preferences” have reduced demand for their products, i.e. canned goods. The industrial canning process for preserving foodstuffs is about two centuries old and has been superseded by other methods, which however rely on consistent refrigeration i.e. electric power. After the apocalypse happens, of course, and everything else spoils, those derelict cans of Del Monte peaches, etc., will be highly prized barter items, so stock up now kids.
“How did this happen, after all these years of successful marketing? “
People moving to frozen/freash vegetables and Gen Z/Millinials who only eat out
I have always trusted Del Monte.
I’ve always found their canned vegetables and fruit to be very good.
Probably should have gone into frozen foods a long time ago. Unless they have under another name.Cans used to occupy a lot of shelf space in grocery stores, now you have to look for them.
Is it known whether Del Monte adds aborted fetal cells to their foods?
Mismanaged, obviously.
Taxed to death?
HTF does an icon fail?
Brand.
Perpetually growing demand.
Serious ‘preppers’ - even people who just want to be adequately prepared for ‘normal’ emergencies like storms, power outages, etc., rely a lot on canned fruit and vegetables.
It’s hard to believe that Del Monte has filed for bankruptcy. The article says that changing consumer preferences has hurt them as consumers move towards fresh fruits and vegetables and away from canned and processed ones, but that strikes me as an inadequate explanation.
People are still going to buy canned vegetables as they’re an inexpensive alternative to fresh vegetables and with the food inflation we’ve experienced during the Biden years, all the more so. Many recipes use them and canned vegetables still make up a sizeable portion of shelf space in grocery stores. I haven’t heard of other competing brands struggling to stay afloat because of changing consumer preferences.
Maybe. Lotsa sodium
I also think part of Del Monte’s problem is that consumers aren’t as brand loyal as they used to be, at least not for canned goods.
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