Del Monte Foods Files for Bankruptcy
Del Monte Foods, a leading brand name in canned fruits, vegetables, and prepared food products, has petitioned for Chapter 11 bankruptcy protection in the United States. The filing on July 1, 2025, seeks to enable a court-monitored sale process and reorganize the company’s debt load estimated between $1 billion and $10 billion.
The bankruptcy filing is a result of Del Monte’s difficulty in coping with long-term changes in consumer tastes, supply chain dislocations, and increasing raw material costs. Consumers have increasingly shifted to fresh and organic produce, affecting demand for conventional canned fare. The firm also encountered steep input cost inflation as a result of tariffs imposed on steel and aluminum, which are critical for its canning business.
To fund operations throughout the restructuring process, Del Monte has obtained $912.5 million in DIP financing, which includes $165 million of new capital. The funding will enable Del Monte to maintain uninterrupted production and delivery of food products through the critical packing season.
The firm intends to dispose of substantially all of its assets in a value-maximizing strategy in accordance with a restructuring support agreement with lenders. U.S. operations will proceed through the process, while Del Monte’s international businesses are not affected.
Del Monte’s bankruptcy highlights more general issues confronting the packaged food industry, particularly legacy brands struggling with changing consumer trends. The fate of the sale and restructuring will tell whether the historic 139-year-old company can reinvent itself and survive under new management in a shifting food market environment.
