WALNUT CREEK, Calif. — Del Monte Foods, a leading producer of canned fruits and vegetables, filed for Chapter 11 bankruptcy with the United States Bankruptcy Court District of New Jersey to pursue a court-supervised sale.
On July 1, the company announced that bankruptcy would help the company find new ownership, restructure its balance sheet and maximize value for stakeholders through a sale of all or most of its assets.
Del Monte Foods has a restructuring support agreement with key lenders that support the sale.
The company has secured $912.5 million in debtor-in-possession financing, of which $165 million is new funding, to remain operational through the current pack season and bankruptcy proceedings.
“This is a strategic step forward for Del Monte Foods. 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,” said Greg Longstreet, President and CEO of Del Monte Foods.
Brands like Del Monte, Joyba, College Inn, S&W Premium, Take Root Organics, Kitchen Basics and Contadina will still be available. The company said it will continue fulfilling orders and working with vendors and suppliers throughout the bankruptcy process.
Non-U.S. subsidiaries will operate as usual since the filing only affects U.S operations.
“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," Longstreet said.
Del Monte began in 1886 with premium coffee for a Monterrey hotel before it began canning peaches in 1892. By 1909, Del Monte was the world's largest fruit and vegetable cannery.
Photo courtesy: (PRNewsFoto/Del Monte Foods)
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