Del Monte Foods Corp. late yesterday (July 1) filed for Chapter 11 bankruptcy protection as it “is pursuing a value-maximizing sale process as part of an overall strategic balance-sheet restructuring.”
The Walnut Creek, Calif., company “has entered into a restructuring support agreement (RSA) with a group of its lenders holding certain of the Company’s term loan indebtedness. The RSA contemplates the Company undertaking a going-concern sale process for all or substantially all of the Company’s assets, with the support of the lender group under the RSA, which is targeted at obtaining the highest or best offer to maximize value for all stakeholders.”
Del Monte Foods, primarily a fruit and vegetable canner, is 138 years old and has been owned since 2014 by Singapore and Philippines-listed Del Monte Pacific Ltd. Other subsidiaries of Del Monte Pacific are not affected by the bankruptcy filing. The parent firm has not yet filed its annual report, although its 2025 fiscal year ended April 30.
In our Top 100 companies list last year, Del Monte (U.S.) had $1.737 billion in sales, accounting for about 73% of Del Monte Pacific. The parent firm recorded a $127 million loss last year, most of it attributed to its American subsidiary.
In its bankruptcy filing, Del Monte lists more than 10,000 creditors and both assets and liabilities at between $1-10 billion – a separate financial report from April of 2024 figured both assets and liabilities at $2.3 billion. The company has a commitment for $912.5 million from lenders that will help fund it through the going-concern sale process and allow it to continue operating.
The list of creditors includes Seneca Foods, Steuben Foods and Reser’s Fine Foods.
Subsidiaries, many of them brands, include Sager Creek Foods, S & W Fine Foods, College Inn Foods, Contadina Foods, Hi Continental Corp., Joyba Inc., Kitchen Basics Inc., Green Thumb Foods, Del Monte Chilled Fruit Snacks and Del Monte Mexico Holdings LLC.
“This is a strategic step forward for Del Monte Foods,” said President/CEO Greg Longstreet. “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. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success.”
Later in the company announcement, Longstreet acknowledged “challenges intensified by a dynamic macroeconomic environment.” Perhaps he was talking about 35% U.S. tariffs on imported tinplate, used for making cans.
