New York (CNN) — Del Monte Meals, the 138-year-old firm finest recognized for its canned vegatables and fruits, has filed for chapter and is on the lookout for a purchaser.
Late Thursday, the corporate introduced it was voluntarily getting into Chapter 11 and goes via a sale course of for all of its belongings. Among the many firm’s product traces are a variety of well-known kitchen staples, together with Faculty Inn broths and Contadina canned tomatoes, in addition to its flagship Del Monte model.
“After an intensive analysis of all out there choices, we decided a court-supervised sale course of is the best technique to speed up our turnaround and create a stronger and enduring Del Monte Meals,” mentioned President and CEO Greg Longstreet, in an announcement.
Del Monte mentioned it secured $912.5 million in new funding that can permit the corporate to stay afloat through the sale course of and can maintain the corporate working as regular because it enters the height canning season. The corporate listed liabilities estimated between $1 billion and $10 billion, in response to court docket paperwork.
“With an improved capital construction, enhanced monetary place and new possession, we will likely be higher positioned for long-term success,” added Longstreet.
He mentioned that the corporate has “confronted challenges intensified by a dynamic macroeconomic setting,” notably customers reducing again on their spending and a rising shift towards spending on non-public labels.
Del Monte “says that client demand has declined inflicting it to incur elevated prices associated to surplus stock that it has needed to warehouse and try to maneuver off cabinets with elevated promotional spending,” in response to Sarah Foss, world head of authorized and restructuring at Debtwire. “Shopper preferences have shifted away from preservative-laden canned meals in favor of more healthy alternate options.”
Del Monte obtained its begin in 1886 and constructed its well-known cannery in San Francisco in 1907. The corporate claims that it operated the most important fruit and vegetable cannery on the earth by 1909.
The-CNN-Wire™ & © 2025 Cable Information Community, Inc., a Time Warner Firm. All rights reserved.