Del Monte Foods, a 138-year-old titan in canned fruits and vegetables, filed for Chapter 11 bankruptcy on July 1 in the U.S. Bankruptcy Court for the District of New Jersey, aiming to restructure its finances and pursue a sale of its assets.
What Happened: The company, known for brands like Del Monte, Contadina, and College Inn, secured $912.5 million in debtor-in-possession financing, including $165 million in new funds, to maintain operations during this process, according to a press release
The company's struggles stem from a combination of heavy debt, shifting consumer preferences, and macroeconomic pressures.
A CNN Business report indicates that consumers are increasingly favoring healthier, preservative-free alternatives, reducing demand for Del Monte's core products.
While competitors adapted to trends like plant-based fresh foods and innovative packaging, Del Monte's flat sales of $2.4 billion in fiscal 2024 and a $127 million net loss reflect its failure to pivot effectively.
Greg Longstreet, the president and CEO of Del Monte Foods, said that the company “faced challenges intensified by a dynamic macroeconomic environment.”
Additionally, the 2014 acquisition by Del Monte Pacific Limited saddled the U.S. subsidiary with over $1.2 billion in secured debt, exacerbated by rising interest rates, as noted by Bloomberg.
“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,” added Longstreet.
See Also: Bill Gates Is Betting Two-Thirds Of His Foundation’s Portfolio In These 3 Stocks
Why It Matters: Here is how the stocks of the other canned food products in the U.S. have performed in 2025 and over the last year.
| Stocks | YTD Performance | One Year Performance |
| Kraft Heinz Company (NASDAQ:KHC) | -12.06% | -15.67% |
| Conagra Brands, Inc. (NYSE:CAG) | -23.60% | -24.85% |
| Campbell Soup Company (NYSE:CPB) | -24.01% | -29.04% |
| B&G Foods, Inc. (NYSE:BGS) | -36.33% | -42.09% |
| General Mills Inc. (NYSE:GIS) | -15.28% | -14.66% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, edged higher on Wednesday. The SPY was up 0.45% at $620.45, while the QQQ advanced 0.70% to $550.80, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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