Del Monte Foods, a 139-year-old company, best known for its preserved fruits and vegetables, is placed under the protection of the bankruptcy law in the United States, while American consumers are increasingly abandoning its products for the benefit of healthier or cheaper options.
Del Monte obtained funding of US 912.5 million as a debtor-exploiting, which will allow him to continue his activities normally during the sale.
“After an in -depth evaluation of all the available options, we determined that a sales procedure supervised by a court was the most effective way to accelerate our recovery and create a stronger and more sustainable DEL Monte Foods company,” said President and CEO Greg Longstreet in a press release.
Del Monte Foods, established in Walnut Creek, California, also has brands of Tomato Products Contadina, the College Inn and Kitchen Basics broths, as well as tea with Joyba pearls.
The company recorded a growth in sales of Joyba and Bouillon during the year 2024, but not enough to compensate for the drop in sales of the emblematic cans of MONTE.
“Consumers have turned from preserves rich in conservatives for the benefit of healthier spare solutions,” observes Sarah Foss, a global responsible for legal affairs and restructuring at Debtwire, a financial consulting firm.
Food prices inflation has also prompted consumers to turn to cheaper distributor brands. In addition, the 50 % customs duties imposed by President Donald Trump on imported steel, which entered into force in June, will also increase the prices of the preserves that DEL Monte and others must pay.
Del Monte Foods, ownership of the Singaporean group Del Monte Pacific, was also continued last year by a group of lenders who opposed the company’s debt restructuring plan. The case was settled in May by a loan which increased the interest charges of DEL rises by US 4 million per year, according to a press release from the company.
Del Monte said at the end of the day on Thursday that the bankruptcy was part of a company’s asset sales project.
The American subsidiary del Monte Foods is not affiliated with other LED companies in the world, such as Del Monte Canada.
