Del Monte Foods, a 140-year-old canned goods company, filed for bankruptcy protection on Tuesday due to rising borrowing costs, pandemic missteps, and a changing global economy. The California-based company has secured $165 million to continue operations during its Chapter 11 bankruptcy process.
Facing over $1.2 billion in secured debt, Del Monte agreed to sell “all or substantially all” of its assets as part of a restructuring agreement with lenders. This move aims to accelerate the company’s turnaround and create a stronger future.
Del Monte has struggled with economic issues for several years, including rising interest rates and increasing debt since its acquisition in 2014. The company’s annual cash interest expense has nearly doubled since 2020.
Analysts attribute Del Monte’s poor operating performance to factors such as inflation, tariffs on steel and aluminum making cans more expensive, and consumers choosing store brands over national names. The shift towards private labels has resulted in higher market share for these players, who often offer lower prices.
Despite the challenges, Del Monte remains committed to its mission of providing nutritious and great-tasting food to all consumers.
Source: https://www.nytimes.com/2025/07/02/business/del-monte-bankruptcy.html