New York
NCS
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Del Monte Foods, the 138-year-old firm greatest recognized for its canned vegatables and fruits, has filed for bankruptcy and is trying for a purchaser.
Late Tuesday, the corporate introduced it was voluntarily coming into Chapter 11 and goes via a sale course of for all of its property. Among the corporate’s product strains are plenty of well-known kitchen staples, together with College Inn broths and Contadina canned tomatoes, in addition to its flagship Del Monte model.
“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,” mentioned President and CEO Greg Longstreet in a press release.
Del Monte mentioned it secured $912.5 million in new funding that may enable the corporate to stay afloat through the sale course of and can maintain the corporate working as regular because it enters the height canning season. The firm listed liabilities estimated between $1 billion and $10 billion, based on courtroom paperwork.
“With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success,” added Longstreet.
He mentioned that the corporate has “faced challenges intensified by a dynamic macroeconomic environment,” notably shoppers reducing again on their spending and a rising shift towards spending on personal labels.
Del Monte “says that consumer demand has declined, causing it to incur increased costs related to surplus inventory that it has had to warehouse and attempt to move off shelves with increased promotional spending,” based on Sarah Foss, international head of authorized and restructuring at Debtwire. “Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives.”
Del Monte bought its begin in 1886 and constructed its well-known cannery in San Francisco in 1907. The firm claims that it operated the most important fruit and vegetable cannery on the planet by 1909.