Del Monte Files for Bankruptcy After 138 Years as Consumer Tastes Shift
Walnut Creek, California – Del Monte Foods, the iconic grocery brand known for its canned fruits, vegetables, and pantry staples, has filed for Chapter 11 bankruptcy, marking a dramatic turn for the 138-year-old company. The filing, announced Thursday, comes as the company seeks a buyer to take over its U.S. and Mexican operations while grappling with rising costs and changing consumer preferences.
A Strategic Move to Secure Future
Del Monte, headquartered in Walnut Creek, California, operates six U.S. production facilities and two in Mexico. The company plans to sell all its assets through a court-supervised process, which it says will help streamline operations and attract new ownership.
“This is a strategic step forward for Del Monte Foods,” said President and CEO Greg Longstreet in a statement. “After evaluating all options, we determined this process is the best way to accelerate our turnaround and build a stronger future.”
To sustain operations during the transition, Del Monte secured $912.5 million in new financing, including $165 million from existing lenders. Court documents reveal the company’s liabilities range between $1 billion and $10 billion.
From Industry Leader to Financial Struggles
Founded in 1886, Del Monte became the world’s largest canned fruit and vegetable producer by 1909. Its products—including canned pineapples, peaches, and tomatoes, along with College Inn broths and Contadina sauces—have been grocery store staples for generations.
But in recent years, the company has faced mounting challenges. Rising production costs, supply chain disruptions, and a consumer shift toward fresh and organic foods have eroded its market dominance.
“Consumer preferences have moved away from preservative-heavy canned goods toward healthier alternatives,” said Sarah Foss, global head of legal and restructuring at Debtwire. While canned foods saw a brief resurgence during economic uncertainty—such as after Trump-era tariffs—health concerns over BPAs (chemicals found in can linings) have further dampened demand.
Global Operations Unaffected
Del Monte’s international divisions—including major operations in the Philippines, Singapore, and India—remain untouched by the bankruptcy filing. The company assured customers and partners that its non-U.S. businesses, including those in Mexico, will continue without interruption.
Part of a Larger Retail Trend
Del Monte isn’t alone in its financial struggles. Several major retailers, including Big Lots and Joann Fabrics, have filed for Chapter 11 bankruptcy in recent months, reflecting broader economic pressures like inflation, high interest rates, and shifting consumer habits.
Despite its challenges, Del Monte remains optimistic. “For nearly 140 years, we’ve nourished families,” Longstreet said. “We’re committed to our mission of providing nutritious, great-tasting food and are grateful for the support of our employees, growers, and partners.”
What’s Next for Del Monte?
The company’s bankruptcy filing is a pivotal moment in its long history. While the U.S. business restructures, the brand’s global presence may help sustain its legacy. Whether through new ownership or a revamped strategy, Del Monte’s next chapter will hinge on adapting to a market that increasingly prioritizes freshness over shelf stability.
For now, shoppers can still find Del Monte products on shelves—but the future of this once-dominant food giant remains uncertain.
