Del Monte Files for Bankruptcy After 139 Years: What Went Wrong for the Canned Food Icon

Del Monte Foods, the 139-year-old brand synonymous with canned fruits and vegetables in American pantries, has filed for Chapter 11 bankruptcy protection, marking a dramatic decline for one of the most recognisable names in U.S. grocery history. The California-based company announced on Wednesday that it has secured $912.5 million in debtor-in-possession financing, enabling it to continue normal operations while undergoing a court-supervised sale process.

CEO Greg Longstreet framed the move as a strategic pivot rather than a collapse, stating, “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.”

Despite attempts to diversify its offerings, including growing sales of Joyba bubble tea and broth brands like College Inn and Kitchen Basics, Del Monte has failed to overcome mounting economic headwinds and shifting consumer preferences.

Why Did Del Monte Go Bankrupt?

A perfect storm of challenges led to Del Monte’s financial spiral:

Consumer Trends: American shoppers are increasingly turning away from preservative-heavy canned goods in favor of fresh, organic, and healthier alternatives. This trend hit Del Monte’s core product lines the hardest.

Grocery Inflation: Rising food prices have caused shoppers to reach for cheaper store brands, eroding the company’s market share in a fiercely competitive space.

Tariffs on Steel: President Donald Trump’s 50% tariff on imported steel, effective since June, raised the cost of producing cans, further squeezing Del Monte’s already-thin margins.

Debt Burden: Del Monte was also grappling with financial turmoil. A lawsuit filed by lenders in 2024 challenged the company’s debt restructuring plan. Although settled in May, the resulting loan hiked the company’s annual interest expense by $4 million, exacerbating its cash flow issues.

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What’s Next for Del Monte Foods?

The 139-year-old brand is owned by Del Monte Pacific, a company headquartered in Singapore. While the bankruptcy filing applies to its U.S. division, the ripple effects could extend globally. According to company sources, the move is part of a planned asset sale aimed at stabilising the business and attracting new ownership or investment.

Industry analysts see the Canned Food giant’s bankruptcy as a warning sign for other legacy food companies struggling to adapt to modern consumer demands. “This isn’t just about one brand,” said Sarah Foss, global head of legal and restructuring at Debtwire. “This is about how quickly the food industry is evolving — and who’s left behind.”

Is This the End of the Canned Food Era?

Del Monte’s downfall signals a larger shift in how Americans eat and shop. Once a symbol of postwar convenience and reliability, the humble can of fruit now battles against fresh produce, plant-based meals, and private labels.

Whether Del Monte survives in some form depends on what happens next in the bankruptcy court, but one thing is clear: the shelf life of iconic brands is no longer guaranteed.