Del Monte Foods Files for Bankruptcy – 135-Year-Old Brand Seeks Restructuring Under Chapter 11
A legacy in crisis: Iconic U.S. food company Del Monte Foods has filed for Chapter 11 bankruptcy protection, signalling a major turning point in its 135-year history. The filing, submitted on Tuesday, affects only the company’s U.S. operations—international subsidiaries remain unaffected. The goal is to maintain operations while shedding debt and strategically realigning the business.
Pandemic boom turned bust
During the COVID-19 pandemic, demand for shelf-stable foods surged as consumers stocked up and ate more meals at home. Del Monte ramped up production to meet record demand. But when consumption patterns normalised, the company was left with excess inventory, which it had to store, write down, or sell at a loss. CEO Greg Longstreet said:
“As demand declined, we were left with too much inventory that we had to store, write off, and sell at a significant loss.”
Shifting consumer habits and financial pressures
The company also faces long-term structural challenges. Consumer preferences have increasingly shifted away from preserved and processed foods toward fresh produce and cleaner labels. At the same time, Del Monte has been burdened by rising borrowing costs and broader global economic pressures.
Strategic move, says CEO
In a statement, CEO Longstreet called the filing a “strategic step”:
“After a thorough evaluation of all available options, we determined that a court-supervised sale process is the most effective path forward to accelerate our turnaround and create a stronger, more sustainable Del Monte Foods.”
What Chapter 11 means
Chapter 11 bankruptcy allows companies to reorganise under court protection while continuing to operate. According to filings in New Jersey, Del Monte’s assets and liabilities each range between $1 billion and $10 billion. The company estimates between 10,000 and 25,000 creditors. To support ongoing operations, Del Monte secured $912.5 million in debtor-in-possession (DIP) financing.
Brands and workforce remain active
Del Monte employs about 8,100 people and owns well-known brands like College Inn broths and Joyba bubble tea. These products remain on the shelves for now as the company works toward restructuring.
Outlook
Del Monte’s bankruptcy underscores the vulnerability of even the most established companies to market shifts and external shocks. The success of its restructuring will depend on its ability to adapt to changing consumer trends and implement a viable long-term plan. The company remains operational—for now—but its future will be decided in courtrooms and boardrooms in the months ahead.
