Del Monte Foods closing California cannery
The closure of a Del Monte Foods fruit cannery in California, will affect around 600 year-round employees and another 1,200 seasonal workers.
The cannery, in California’s Central Valley, processes peaches, apricots and pears.
Employees told CBS News that they were informed of the closure during meetings at the Yosemite Boulevard plant this week.
Pacific Coast Producers in Lodi purchased millions of dollars’ worth of warehoused goods from Del Monte but did not take over plant operations, according to the report.
In its July bankruptcy filing, the 135-year-old company listed assets and liabilities in the range of $1 billion to $10 billion, with creditors estimated between 10,000 and 25,000.
“This is a strategic step forward for Del Monte Foods,” CEO Craig Longstreet said in a news release. “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.”