Del Monte Foods Files for Bankruptcy, Looks to Sell as Part of Turnaround Strategy

Del Monte Foods, which manufactures brands such as Contadina, Del Monte, College Inn and Take Root Organics, has filed for bankruptcy and is looking to sell the company as part of its turnaround strategy. 

Del Monte Foods has secured $912.5 million in new financing. This, combined with cash from ongoing operations, is expected to provide sufficient liquidity during the sale process, according to the company. 

“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,” said Greg Longstreet, president and CEO of Del Monte Foods, in a statement.  

He said an improved capital structure and financial standing, along with new ownership, will better position the company for long-term success. Longstreet cited challenges intensified by a dynamic macroeconomic environment as part of the company’s struggles. 

Also: Tupperware agreed to sell amid bankruptcy