Del Monte Foods Files for Bankruptcy, Looks to Sell as Part of Turnaround Strategy
Del Monte Foods, which manufactures brands such as Contadina, Del Monte, College Inn and Take Root Organics, has filed for bankruptcy and is looking to sell the company as part of its turnaround strategy.
Del Monte Foods has secured $912.5 million in new financing. This, combined with cash from ongoing operations, is expected to provide sufficient liquidity during the sale process, according to the company.
“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,” said Greg Longstreet, president and CEO of Del Monte Foods, in a statement.
He said an improved capital structure and financial standing, along with new ownership, will better position the company for long-term success. Longstreet cited challenges intensified by a dynamic macroeconomic environment as part of the company’s struggles.
Del Monte’s Business Optimization History
The company made several business investments in the past several years as it looked to navigate changes, particularly in consumer behavior.
For example, the company positioned Instacart as a crucial channel in an attempt to reach younger consumers who are predisposed to mobile-first experiences. The company was among the first brands to participate in Instacart's pilot program that showcases digital advertisements on AI-powered smart carts in stores.
Additionally, the company was marrying geofencing technology with insights — including trend tracking, attitude and usage studies, need state analysis, category consumption, focus groups, concept testing, product guidance testing and product validation — to more quickly identify emerging food trends and introduce efficiencies.
