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Canned-food giant Del Monte Foods filed for bankruptcy on Tuesday, the company announced in a statement.
Del Monte Foods began voluntary Chapter 11 proceedings and entered into a restructuring support agreement with a group of its lenders, they said.
“This is a strategic step forward for Del Monte Foods,” CEO Greg Longstreet said in a statement. “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.”
Del Monte said it has secured $912.5 million in financing from some of its existing lenders to support itself through the proceedings.
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Del Monte Foods said it intends to remain open and continue operations throughout the bankruptcy. (REUTERS/Bing Guan/File Photo / Reuters Photos)
The nearly 140-year-old company is known for its Del Monte brand of canned fruits and vegetables, broth and stocks brand College Inn and tea brands like Joyba.
Del Monte Foods is known for its Del Monte brand of canned fruit and vegetables. (Kevin Carter/Getty Images, File / Getty Images)
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Del Monte Foods said it intends to remain open and continue operations throughout the bankruptcy.
Signage with logo at the East Bay regional headquarters of canned goods company Del Monte Foods in Walnut Creek, California, July 26, 2017. (Smith Collection/Gado/Getty Images / Getty Images)
Certain of its non-U.S. subsidiaries are not included in the Chapter 11 proceedings and will continue to operate as usual, the company added.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FDP | FRESH DEL MONTE | 33.34 | +0.09 | +0.27% |
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A filing with the New Jersey bankruptcy court obtained by Reuters estimates the company’s assets and liabilities at between $1 billion and $10 billion, while the number of creditors is estimated at between 10,000 and 25,000.
Reuters contributed to this report.
