Del Monte Foods files for bankruptcy in US, seeks sale
Del Monte Foods has filed for Chapter 11 bankruptcy proceedings in the U.S. and is pursuing a sale.
The company has entered into a restructuring agreement with certain lenders, according to a news release, and has secured $912.5 million in financing to support operations throughout the proceedings.
The voluntary Chapter 11 proceedings were filed in the U.S. Bankruptcy Court for the District of New Jersey.
“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.”
The 135-year-old company listed assets and liabilities in the range of $1 billion to $10 billion, according to the court filing, with creditors estimated between 10,000 and 25,000.
Certain non-U.S. subsidiaries are not included in the Chapter 11 proceedings, the company said.
“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,” Longstreet said. “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.”
Fresh Del Monte Produce Inc., headquartered in Coral Gables, Florida, is an independent, publicly traded company with no operational ties to Del Monte Foods Inc., a privately held U.S. company owned by a parent organization in Singapore.
While both companies share rights to the Del Monte name through historical licensing agreements, Fresh Del Monte owns the rights for prepared food products in Europe, Africa and the Middle East, Fresh Del Monte said in a statement. Del Monte Foods Inc. holds rights to the brand for prepared food in the U.S.
Editor’s note: This story has been updated to include a clarifying statement from Fresh Del Monte Produce Inc.
