Del Monte Foods has announced that it has filed for voluntary Chapter 11 bankruptcy as part of a strategic effort to restructure its balance sheet and pursue a potential sale, according to a news release.
“This is a strategic step forward for Del Monte Foods,” President and CEO Greg Longstreet said. “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.”
The 139-year-old food company, based in Walnut Creek, CA, is one of the largest producers and distributors of branded packaged goods in the U.S., with brands including Del Monte, Contadina, Kitchen Basics, College Inn, JOYBA, and S&W.
Del Monte has secured $912.5 million in financing from existing lenders, including $165 million in new funding, to support operations during bankruptcy, pending court approval, according to the press release. Some non-U.S. subsidiaries are excluded from the filing and will continue their daily operations.
The company also filed customary “first day” motions to ensure ordinary, uninterrupted business, including the continued supply of its food products.
According to a court filing with the U.S. Bankruptcy Court for the District of New Jersey, Del Monte holds between $1 billion and $10 billion in estimated liabilities and assets.
“While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all,” Longstreet added. “I am deeply grateful to our employees, growers, customers and vendors, as well as our lenders, for their support in helping us achieve our long-term goals.”
The industry has been hit hard by elevated food costs, labor shortages, changing consumer habits, and tariffs enacted under President Donald Trump, and Del Monte is the latest in a string of food-related businesses to file for bankruptcy.
In March, Hooters filed for Chapter 11 bankruptcy in Texas, launching a 90-to-120-day restructuring to preserve the brand while transferring over 100 company-owned restaurants to two major franchise groups — one tied to the brand’s founders, AFROTECH™ previously reported. Despite widespread speculation, Hooters said that it has no plans to exit the casual dining scene completely.
Red Lobster, another major restaurant chain, also filed for bankruptcy but is on the road to revitalization as CEO Damola Adamolekun, who AFROTECH™ reported took over in August 2024, revamped the menu and overall dining experience to appeal to both returning diners and younger generations.
“Young people especially care about the look and feel of a restaurant,” Adamolekun said, per AFROTECH™. “They want to be able to take photos. They want to be able to post on social media.”
