Del Monte Files for Bankruptcy: What Went Wrong With the 138-Year-Old Canned Business?

Del Monte is a well-loved brand in the United States, known for its canned fruits and vegetables often enjoyed at gatherings, celebrations and everyday dinners. However, the iconic company is facing serious trouble as Del Monte Pacific Ltd.'s American arm, Del Monte Foods Holdings Ltd. (DMFHL), has filed for bankruptcy.

Del Monte US Seeks Chapter 11 Protection

On Wednesday 3 July 2025, Del Monte Foods announced it had voluntarily entered Chapter 11 proceedings in the US Bankruptcy Court in New Jersey. Alongside this filing, the company confirmed it is pursuing a sale process for its assets.

'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, CEO and president of Del Monte's US arm, as reported by CNN.

Del Monte to Continue Operations During Restructuring

Thanks to bankruptcy protection, Del Monte Pacific Ltd. (DMPL) and its subsidiaries will have access to £670 million ($912.5 million) in financial assistance. This funding will help Del Monte US continue its operations during the sale process, allowing it to keep producing during the peak canning season in the US.

'Chapter 11 allows a company, through its existing management, to continue operating in the ordinary course,' DMFHL stated via The Daily Tribune.

DMFHL also noted: 'The Company has been advised that this filing is part of DMFHL's overall strategic plan aimed at maximising value for its business operations and those of its subsidiaries.'

Del Monte clarified that the bankruptcy filing in the US will not impact its other businesses in the Philippines or other international markets. The company reassured consumers that its Asian and international operations remain strong.

'DMPI, with its Asian and international businesses, continues to perform well, with resilient consumer demand supported by a strong and stable supply chain. The Company is confident in DMPI's ability to maintain uninterrupted business operations going forward,' said DMPL.

What Led to Del Monte US's Financial Troubles?

Greg Longstreet explained that Del Monte has faced multiple challenges in the US. These issues have worsened due to a dynamic macroeconomic environment in which consumers are reducing spending and increasingly choosing private labels.

The Del Monte US president admitted that consumer demand has dropped significantly, forcing the company to 'incur increased costs related to surplus inventory that it has had to warehouse and attempt to move off shelves with increased promotional spending.'

A Storied History Under Pressure

Del Monte started its business in 1886 and built its famous cannery in San Francisco in 1907. By 1909, it had become the largest vegetable and fruit cannery in the world, cementing its place in American households for more than a century.

Despite its rich history, Del Monte US now faces a difficult path as it restructures to secure its future. Analysts note that while Chapter 11 provides breathing room, the brand will need to address changing consumer preferences and rising operational costs to regain stability.