“This is a strategic step forward for Del Monte Foods,” said Greg Longstreet, president and chief executive officer. “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 company is the owner of the Del Monte, Contadina, College Inn, Kitchen Basics, Joyba, Take Root Organics and S&W brands.
For the fiscal year ended April 28, 2024, the company had sales of $1.7 billion and recorded a loss of $118.64 million. The financial disclosure information also valued the company’s total assets at $2.3 billion.
Del Monte Foods has secured $912.5 million in debtor-in-possession financing from lenders that is subject to court approval. The financing, along with cash from ongoing operations, is expected to provide sufficient liquidity during the sale process, according to the company.
“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.”
Some of Del Monte Foods’ non-US subsidiaries are not included in the Chapter 11 proceedings, according to the company.
