Del Monte Foods, a company with a 138-year history known for its canned produce, has filed for Chapter 11 bankruptcy as it looks to sell the business.
The move comes as changing consumer habits and rising costs continue to hurt the company's bottom line.
The company made the announcement late Tuesday, saying it will continue normal operations during the bankruptcy process.
To keep things running smoothly ahead of the busy canning season, Del Monte has lined up $912.5 million in new funding.
Del Monte President and CEO Greg Longstreet explained in a statement, "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."
Del Monte is one of the oldest and most well-known names in US grocery aisles. According to CNN, the brand includes familiar items like College Inn broths, Contadina canned tomatoes, and its signature Del Monte-branded vegetables and fruit.
Del Monte revealed in court documents that its debt falls between $1 billion and $10 billion. The company also noted that the planned sale would cover most, if not all, of its assets.
Del Monte Foods files for bankruptcy as 139-year-old food icon seeks sale https://t.co/H0PIni5ckT pic.twitter.com/Vdch9rpFtw
— New York Post (@nypost) July 2, 2025
Del Monte Struggles as Shoppers Choose Healthier, Cheaper Options
In recent years, Del Monte has struggled with slowing demand. Shoppers are turning toward healthier and fresher options instead of traditional canned foods, often choosing store brands that cost less.
This shift has forced Del Monte to spend more on promotions to move products, while also paying extra to store unsold items.
"Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire.
She added that Del Monte faced higher warehousing costs due to surplus inventory, CBS News said.
Del Monte isn't the only food company facing challenges. It is the fourth major food brand to file for bankruptcy in 2025, following others impacted by similar changes in customer behavior and increased operating costs.
Despite the filing, Longstreet expressed hope: "With an improved capital structure, enhanced financial position, and new ownership, we will be better positioned for long-term success."
Founded back in 1886, Del Monte once ran the biggest fruit and vegetable cannery in the world.
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