Del Monte Foods has filed for Chapter 11 bankruptcy protection in the US to facilitate a sale of its business.
The company has entered into a restructuring support agreement (RSA) with a group of its lenders to undertake a going-concern sale for all or substantially all of its assets. It has also secured $912.5 million in debtor-in-possession financing to provide sufficient liquidity during the process.
The firm plans to continue business operations in the ordinary course and on an uninterrupted basis throughout the bankruptcy.
President and CEO Greg Longstreet said that the company has faced challenges intensified by a dynamic macroeconomic environment.
“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,” Longstreet added.
Founded in 1886, Del Monte Foods’ portfolio includes canned fruits and vegetables brand Del Monte, broth and stock business College Inn, and tea brands like Joyba.
Certain non-US subsidiaries of the company are not included in the Chapter 11 proceedings and continue to operate as usual.
Note: Fresh Del Monte Produce Inc, listed on the NYSE, issued a statement Thursday confirming it has no financial or operational affiliation with Del Monte Foods.
“The two companies are entirely separate entities, with no shared ownership, governance, or operations. Del Monte Foods Inc is a privately held US company owned by a parent organisation based in Singapore. Fresh Del Monte Produce Inc’s financial or operational performance is not impacted by that separate, unaffiliated company’s announced legal or financial proceedings,” the statement said.
“While both businesses share rights to the Del Monte name through historical licensing arrangements, they operate under distinct ownership and serve different geographic markets.”
