Del Monte Foods Files for Bankruptcy: What Went Wrong with the Canned Giant?

By - Mahi

The 140-year-old canned food giant behind Contadina and College Inn is seeking court protection under Chapter 11.

Del Monte struggled with over $1.2 billion in debt, rising costs, and consumers switching to cheaper private-label brands.

During COVID-19, Del Monte ramped up production. But when demand dropped, excess inventory led to massive losses.

Since its 2014 acquisition, interest costs kept rising. Annual interest payments nearly doubled over the past five years.

With inflation hitting wallets, many buyers chose budget-friendly store brands instead of Del Monte’s premium products.

S&P Global downgraded Del Monte's credit to B– last year due to ongoing financial struggles and falling revenues.

Tariffs on imported steel and aluminum pushed up packaging costs — 80% of can steel is sourced from abroad.

Del Monte plans to sell most of its assets while continuing operations. It has secured $165M to stay afloat for now.

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