Del Monte Foods has filed for Chapter 11 bankruptcy and initiated a court-supervised Del Monte Chapter 11 sale process designed to reduce its debt and attract a buyer. This move aims to stabilize the company’s finances and ensure the continuous delivery of its well-known food brands throughout the restructuring.
According to a press release, the filing in the U.S. Bankruptcy Court for the District of New Jersey follows an agreement with lenders to restructure term loan debt and pursue a sale of substantially all assets on a going-concern basis.
Strategic Sale Process to Maximize Value
Del Monte entered into a restructuring support agreement with key lenders, which supports the Del Monte Chapter 11 sale process. The deal aims to secure the highest or best offer for the company’s assets, thereby maximizing value for its stakeholders.
“This is a strategic step forward,” said Greg Longstreet, President and CEO. “After evaluating all options, we determined this process is the best way to accelerate our turnaround.”
Del Monte Foods is one of the country’s largest producers, distributors, and marketers of premium quality, branded food products. The company remains committed to delivering trusted brands to customers throughout the sales process.
Financing Secured to Support Operations
To fund ongoing operations and the current pack season, Del Monte secured $912.5 million in debtor-in-possession (DIP) financing, including $165 million in new capital. The funding, backed by existing lenders and subject to court approval, will maintain liquidity during the Del Monte Chapter 11 sale process.
Del Monte assured customers that its signature portfolio — including Del Monte®, Contadina®, College Inn®, Kitchen Basics®, JOYBA®, Take Root Organics®, and S&W® — will continue to be available nationwide.
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Business Operations to Continue Without Disruption
Del Monte filed customary “first day” motions seeking court approval to keep operations, payroll, and vendor payments running smoothly throughout the bankruptcy and sale process.
Non-U.S. subsidiaries are not included in the bankruptcy filing and will operate normally.
Despite the filing, the company emphasized its ongoing commitment to providing healthy, convenient, and delicious food.
Long-Term Positioning Through the Sale Process
The Del Monte Chapter 11 sale process aims to give the company a fresh start with a stronger balance sheet and improved financial flexibility.
“We have faced economic challenges, but Del Monte has nourished families for nearly 140 years,” said Longstreet. “This process will help us build on that legacy.”
Longstreet thanked employees, growers, vendors, customers, and lenders for their continued support during this transition.
“With new ownership and a sustainable capital structure, we expect to position Del Monte for long-term growth,” he added.
Next Steps in the Del Monte Chapter 11 Sale Process
Del Monte has not disclosed potential buyers or timelines, but will work closely with the court to pursue the best offer for its assets.
The next court hearing will consider the approval of DIP financing and first-day motions, which are essential for the smooth continuation of business.
As the Del Monte Chapter 11 sale process unfolds, the company remains focused on delivering trusted products while preparing to emerge more competitive and financially sound.