Del Monte Foods Files for Bankruptcy, Seeks Buyer

Del Monte Foods, a 139-year-old California-based producer famous for canned fruits and vegetables, has filed for Chapter 11 bankruptcy protection due to declining demand, changing consumer preferences, inflation, steel tariffs, and increased competition from store brands. The company has secured $912.5 million in debtor-in-possession financing to maintain operations while it seeks a buyer through a court-supervised sale. Despite some growth in its Joyba bubble tea and broth brands, overall sales declines in core products have continued. Del Monte, which also owns Contadina, College Inn, and Kitchen Basics, will keep its plants open and continue serving customers during restructuring. The bankruptcy underscores the broader market challenges faced by legacy food brands. The company aims to find a new owner as it navigates these difficulties.