Del Monte Foods Files for Bankruptcy Protection Due to Changing Consumer Preferences

Del Monte Foods, a 139-year-old company famous for its canned fruits and vegetables, is filing for bankruptcy protection due to a decline in consumer demand for its products in the United States.

The bankruptcy filing was announced by Del Monte late Tuesday. The company, which also owns brands like Contadina, College Inn, Kitchen Basics, and Joyba, has secured $912.5m in financing to continue operations during the sale process.

Based in Walnut Creek, California, Del Monte has assets and liabilities ranging from $1bn to $10bn, as per a filing in a New Jersey bankruptcy court. CEO Greg Longstreet stated that a court-supervised sale process is the best way to revitalize the company.

While Joyba and broth sales grew in the 2024 fiscal year, they were not enough to compensate for the declining sales of Del Monte's canned products. Consumer preferences have shifted towards healthier options, leading to a decrease in demand for canned foods, as noted by Sarah Foss from Debtwire.

Additionally, rising grocery prices and tariffs on imported steel imposed by President Donald Trump have further impacted Del Monte's costs. The company, owned by Del Monte Pacific of Singapore, also faced challenges from a lawsuit by lenders last year, resulting in increased interest expenses.

Del Monte's stock performance has been relatively stable, with a slight increase over the past five days.

According to the source: Al Jazeera.