Del Monte Foods Files for Bankruptcy, Searches for Buyer

WALNUT CREEK, Calif. — Del Monte Foods, one of the country's largest producers, distributors and marketers of food products, known for its canned vegetables and fruit cups, announced July 1 that it has declared bankruptcy and is searching for a buyer.

The company has commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey and entered into a restructuring support agreement with a group of its lenders.

“This is a strategic step forward for Del Monte Foods,” said Greg Longstreet, president and CEO of Del Monte Foods. “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 company has secured a $912.5 million commitment in debtor-in-possession financing, inclusive of $165 million in new funding, from its existing lenders, subject to court approval. This financing, along with cash from ongoing operations, is expected to provide sufficient liquidity during the sale process and fund the company’s ongoing operations, including the pack season that is presently underway, according to the company.

“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,” said Longstreet. “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."

Del Monte Foods has filed several motions that, upon court approval, will enable it to continue business operations on an uninterrupted basis, the company said.

The company’s non-U.S. subsidiaries are not included in the Chapter 11 proceedings and continue to operate as usual, according to Del Monte Foods.

More information, including court filings and other documents related to the proceedings, are available at https://cases.stretto.com/DelMonteFoods, by contacting DelMonteInquiries@Stretto.com, or by phone at 833-228-5497 (or 714-263-3709 for calls originating outside of the U.S.).