Del Monte files for bankruptcy due to declining sales from consumer preference for healthier options

From Yahoo Finance: 2025-07-02 10:54:00

Del Monte Foods, known for canned fruits and vegetables, files for bankruptcy protection due to declining sales from consumer preference for healthier and cheaper options. The company secures $912.5 million in financing to continue operations during the sale process.

CEO Greg Longstreet states court-supervised sale process is best for turnaround. Del Monte, based in California, owns brands like Contadina tomatoes and Joyba bubble tea. Sales of Joyba and broth grow, but can’t offset declining canned product sales.

Consumer shift away from canned food to healthier options impacts Del Monte. Grocery inflation and Trump’s 50% steel tariff contribute to sales decline. Lawsuit last year and increased interest expenses from debt restructuring also affect Del Monte. Bankruptcy filing part of planned asset sale.

Read more: Del Monte, the 139-year-old canned fruits and vegetables company, seeks bankruptcy protection