Latest news with #WalnutCreek
Yahoo
04-07-2025
- Business
- Yahoo
Why is Del Monte bankrupt? 138-year-old brand seeks buyer in Chapter 11 filing
A well-known grocery store brand, which has long sold canned fruits and vegetables, has filed for bankruptcy. No tax on tips or overtime, with a catch: What to know as Trump's 'big, beautiful bill' passes the Senate 'Alligator Alcatraz' merch appears on Amazon and Florida GOP website, making light of controversial facility Psychologists now know exactly what makes someone cool. Turns out, the definitions are universal Del Monte Foods, a 138-year old company, filed for Chapter 11 bankruptcy on Thursday. The company is headquartered in Walnut Creek, California, and operates six production facilities across the U.S., and two in Mexico. The company is now looking for a buyer with plans to sell off all of its assets. 'This is a strategic step forward for Del Monte Foods,' said Greg Longstreet, president and CEO of Del Monte Foods, in a press release. '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.' In addition to its flagship Del Monte brand, which includes canned fruits, vegetables, fruit cups, juices, and more, the company is also known for selling College Inn and Contadina products. The company began in 1886 before building a cannery in 1907 in San Francisco in 1907. Just two years later, in 1909, it had become the largest canned fruit and vegetable company in the world, according to the company's website. Del Monte says it has secured $912.5 million in new funding, which includes $165 million from some of its current lenders. The funds will allow the company to continue operations leading up to its sale. The company listed liabilities estimated between $1 billion and $10 billion, per court documents. Mr. Longstreet continued, '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. 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 also operates outside of the U.S. and Mexico, with other main locations in the Philippines, Singapore, and India. The company says it doesn't expect interruptions to non-U.S. units, including its operations in Mexico. When it comes to recognizable grocery store products, Del Monte has been one of the biggest staples on the shelves for over a decade. Still, the company is not the only major brand to face financial challenges as of late. A number of fast casual chains, pharmacies, and other stores, such as Big Lots and Joann Fabrics, have all filed for Chapter 11 bankruptcy in recent months, signaling that in a tough market even iconic brands are struggling to hold on. While Del Monte says increased production costs are to blame for the company's struggles, some experts say that canned foods, which rely heavily on preservatives, are no longer America's go-to at the grocery store. 'Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,' Sarah Foss, global head of legal and restructuring at Debtwire, said, per CNN. While Americans did lean on canned food immediately after Trump announced new tariffs, with more information around the risks of high levels of bisphenol A (BPAs) in canned products, there are plenty of health-focused reasons to avoid them altogether. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBC
02-07-2025
- Business
- CBC
Canned foods giant Del Monte files for bankruptcy protection
Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as consumers increasingly bypass its products for healthier or cheaper options. Del Monte has secured $912.5 million US in debtor-in-possession financing that will allow it to operate normally as the sale progresses. "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," CEO Greg Longstreet said in a statement. Del Monte Foods, based in Walnut Creek, Calif., also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands, as well as the Joyba bubble tea brand. The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products. "Consumer preferences have shifted away from preservative-laden canned food in favour of healthier alternatives," said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy. Grocery inflation also caused consumers to seek out cheaper store brands. And U.S. President Donald Trump's 50 per cent tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans. Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company's debt restructuring plan. The case was settled in May with a loan that increased Del Monte's interest expenses by $4 million US annually, according to a company statement. Del Monte said late Tuesday that the bankruptcy filing is part of a planned sale of company's assets.
Al Jazeera
02-07-2025
- Business
- Al Jazeera
Del Monte seeks bankruptcy protection as consumers turn away
Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as consumers in the United States increasingly bypass its products for healthier or cheaper options. Del Monte announced the bankruptcy filing late Tuesday. Del Monte, which also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand, has secured $912.5m in debtor-in-possession financing that will allow it to operate normally as the sale progresses. The Walnut Creek, California-based brand has assets and liabilities ranging from $1bn to $10bn, according to a filing in a New Jersey bankruptcy court. '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,' CEO Greg Longstreet said in a statement. The company has seen sales growth of Joyba and broth in the 2024 fiscal year, but not enough to offset weaker sales of Del Monte's signature canned products. 'Consumer preferences have shifted away from preservative-laden canned food in favour of healthier alternatives,' Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy, told the news agency The Associated Press. Grocery inflation also caused consumers to seek out cheaper store brands. Last month, the consumer price index report showed a 0.3 percent increase in the price of food and 2.2 percent compared with this time last year. Another blow is expected from US President Donald Trump's 50 percent tariff on imported steel. This went into effect in June and will also push up the price that Del Monte and others pay for cans. Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company's debt restructuring plan. The case was settled in May with a loan that increased Del Monte's interest expenses by $4m annually, according to a company statement. Del Monte's stock is about even from the market open, and it is up 4.62 percent over the last five days.
National Post
02-07-2025
- Business
- National Post
Del Monte, the 139-year-old canned fruits and vegetables company, seeks bankruptcy protection
Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as U.S. consumers increasingly bypass its products for healthier or cheaper options. Article content Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses. Article content Article content '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,' CEO Greg Longstreet said in a statement. Article content Article content Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand. Article content Article content The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products. Article content '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, a financial consultancy. Article content Grocery inflation also caused consumers to seek out cheaper store brands. And President Donald Trump's 50% tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans. Article content Del Monte Foods, which is owned by Singapore's Del Monte Pacific, was also hit with a lawsuit last year by a group of lenders that objected to the company's debt restructuring plan. The case was settled in May with a loan that increased Del Monte's interest expenses by $4 million annually, according to a company statement. Article content Del Monte said late Thursday that the bankruptcy filing is part of a planned sale of company assets. Article content
Fast Company
02-07-2025
- Business
- Fast Company
Why is Del Monte bankrupt? 138-year-old brand seeks buyer in Chapter 11 filing
A well-known grocery store brand, which has long sold canned fruits and vegetables, has filed for bankruptcy. Del Monte Foods, a 138-year old company, filed for Chapter 11 bankruptcy on Thursday. The company is headquartered in Walnut Creek, California, and operates six production facilities across the U.S., and two in Mexico. The company is now looking for a buyer with plans to sell off all of its assets. 'This is a strategic step forward for Del Monte Foods,' said Greg Longstreet, president and CEO of Del Monte Foods, in a press release. '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.' From canned fruit king to bankruptcy In addition to its flagship Del Monte brand, which includes canned fruits, vegetables, fruit cups, juices, and more, the company is also known for selling College Inn and Contadina products. The company began in 1886 before building a cannery in 1907 in San Francisco in 1907. Just two years later, in 1909, it had become the largest canned fruit and vegetable company in the world, according to the company's website. Del Monte says it has secured $912.5 million in new funding, which includes $165 million from some of its current lenders. The funds will allow the company to continue operations leading up to its sale. The company listed liabilities estimated between $1 billion and $10 billion, per court documents. Mr. Longstreet continued, '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. 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.' Overseas operations remain unaffected Del Monte also operates outside of the U.S. and Mexico, with other main locations in the Philippines, Singapore, and India. The company says it doesn't expect interruptions to non-U.S. units, including its operations in Mexico. When it comes to recognizable grocery store products, Del Monte has been one of the biggest staples on the shelves for over a decade. Still, the company is not the only major brand to face financial challenges as of late. A number of fast casual chains, pharmacies, and other stores, such as Big Lots and Joann Fabrics, have all filed for Chapter 11 bankruptcy in recent months, signaling that in a tough market even iconic brands are struggling to hold on. Why is Del Monte filing for bankruptcy now? While Del Monte says increased production costs are to blame for the company's struggles, some experts say that canned foods, which rely heavily on preservatives, are no longer America's go-to at the grocery store. 'Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,' Sarah Foss, global head of legal and restructuring at Debtwire, said, per CNN. While Americans did lean on canned food immediately after Trump announced new tariffs, with more information around the risks of high levels of bisphenol A (BPAs) in canned products, there are plenty of health-focused reasons to avoid them altogether.
