Del Monte Foods, a familiar name in the canned-food aisle with more than a century of history, has filed for Chapter 11 bankruptcy protection in the United States, marking a significant turn in its financial trajectory. The company, which has been navigating mounting debt pressures, outlined plans on July 1, 2025, to pursue a strategic sale as part of the court-supervised reorganization process.
In its filing with the U.S. Bankruptcy Court in New Jersey, Del Monte disclosed that its total assets and liabilities fall within a broad range of $1 billion to $10 billion, and that it faces claims from an estimated 10,000 to 25,000 creditors. Despite these figures, the company secured a debtor-in-possession (DIP) financing facility of $912.5 million—comprising $165 million of new capital and additional funding from existing lenders—ensuring that operations remain funded throughout the restructuring.
Chief Executive Officer Greg Longstreet emphasized that entering Chapter 11 was a deliberate, “strategic step” designed to accelerate Del Monte’s turnaround and reinforce its long-term viability. He explained that the move enables the company to maintain business-as-usual operations while engaging in a sale process that could preserve value for stakeholders.
The bankruptcy filing follows a turbulent year. Last year, Del Monte undertook a debt restructuring—including a liability management exercise (LME) that raised $240 million—but this maneuver angered certain lenders. These creditors initiated legal action, accusing the company of defaulting on a $725 million financing agreement by moving assets beyond their reach to benefit participating lenders.
Additionally, in June, Del Monte Pacific Ltd. (its Singapore-listed parent) chose to skip a debt payment to lenders of the U.S. unit while resolving the lawsuit stemming from that restructuring. This backdrop intensifies the rationale behind the Chapter 11 filing: addressing deeper liquidity challenges and streamlining its debt profile.
The company’s difficulties are compounded by shifting market dynamics. Following the pandemic-induced surge in demand, Del Monte faced an overstocked inventory burden, incurring storage costs that further strained its liquidity. Rising interest rates have also amplified the cost of servicing debt—interest payments nearly doubled from $66 million in 2020 to approximately $125 million in the 2025 fiscal year—placing further pressure on working capital.
Consumer tastes have evolved as well. The appeal of canned foods, once a staple of pantry shelves, has waned amid growing consumer preference for fresher, preservative-free options . This downward shift in demand has resulted in operational cutbacks, including at least one plant closure in Washington in June, highlighting the limiting effect on production and efficiency.
Under the support agreement struck with its lenders, Del Monte intends to pursue a “going-concern sale”—offering itself or major assets in a consolidated transaction designed to preserve core operations. The company reassures customers, suppliers, and employees that day-to-day operations will continue uninterrupted throughout the Chapter 11 process.
Importantly, Del Monte’s international subsidiaries are not part of the bankruptcy filing, operating independently and outside the U.S. legal proceedings. These units—alongside brands such as College Inn broth and Joyba tea—will continue normal functioning, providing a degree of stability to the global footprint of the Del Monte enterprise.
The course ahead involves court oversight, negotiations with prospective buyers, and sustained financing to keep operations viable during the transition. Analysts suggest that the company’s success in emerging from Chapter 11 hinges on balancing creditor interests with preserving consumer trust and competitive relevance.
The sale could attract private-equity or strategic corporate bidders drawn to Del Monte’s iconic brands and market presence. However, the company must simultaneously adapt to changing consumer habits and heightened cost pressures to remain competitive.
Should a buyer commit to maintaining the core business and achieve a swift Chapter 11 resolution, Del Monte could emerge a leaner and more agile enterprise—poised to revive its legacy in a transforming food-production landscape. Conversely, delays in securing financing or a deal could extend the timeline and escalate restructuring costs.
Del Monte Foods’ Chapter 11 filing and sale initiative reflect the culmination of a challenging period marked by leveraged debt, legal disputes, inventory missteps, and shifting consumer preferences. With nearly $1 billion secured in DIP financing, business continuity plans in place, and non-U.S. units unaffected, the 135-year-old company is positioning itself for a structured reorganization. Whether this effort crystallizes into a successful turnaround hinges on swift proceedings and a buyer aligned with preserving Del Monte’s storied brands.
