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139-Year-Old Company Files for Bankruptcy, Marking Latest for Iconic Brands
The company filed its Chapter 11 bankruptcy through the U.S. Bankruptcy Court for the District of New Jersey.
In its release, Del Monte said it would be pursuing a "value-maximizing sale process as part of an overall strategic balance-sheet restructuring."
Why It Matters
Del Monte's filing follows a spree of bankruptcy filings by businesses that historically stood the test of time and operated for more than a century.
The uptick in bankruptcy filings could indicate larger economic distress, as inflation, tariffs and fears of a recession all contribute to lower consumer demand.
What To Know
Del Monte said it has secured a commitment for $912.5 million in debtor-in-possession financing, which includes $165 million in new funding from certain existing lenders, subject to court approval.
"This is a strategic step forward for Del Monte Foods. 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," Greg Longstreet, president and CEO of Del Monte, said in a statement.
Newsweek reached out to Del Monte for comment via email. In its release, the company said it will still be able to operate business as usual based on motions subject to court approval.
The company attributed some of its challenges to be "intensified by a dynamic macroeconomic environment," signaling that other centuries-old companies are likely facing distress.
Last month, North America's oldest corporation, Canada's Hudson's Bay Company, also filed for bankruptcy after 355 years. The company was founded in 1670 and lasted centuries after transitioning from fur trading to retail but ultimately couldn't survive the shift to e-commerce.
"The threat and realization of a trade war has created significant market uncertainty and has impacted our ability to complete these transactions," CEO Liz Rodbell said in a March statement.