On July 1, Del Monte Foods announced it was voluntarily entering Chapter 11 and is going through a sale process for all of its assets. For more than a century, Del Monte Foods has been known for its tag line: America's choice for garden quality fruits, vegetables and tomatoes.
“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 president and CEO Greg Longstreet in a statement.
Del Monte said it secured $912.5 million in new funding that will allow the company to remain afloat during the sale process and will keep the company operating as normal as it enters the peak canning season. The company listed liabilities estimated between $1 billion and $10 billion, according to court documents.
“With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success,” added Longstreet.
He said that the company has “faced challenges intensified by a dynamic macroeconomic environment,” notably consumers cutting back on their spending and a growing shift toward spending on private labels.
Click here to see more...