Del Monte Foods, known for canned fruits and vegetables, is filing for bankruptcy protection amid changes in consumer preferences. Securing $912.5 million in debtor-in-possession financing will enable normal operations during the sale process. Sales growth in brands like Joyba and broth has not offset declines in canned product sales. Factors contributing to the financial difficulties include grocery inflation, increased competition from store brands, and added costs from tariffs on imported steel. A planned sale of asset is key to the company's turnaround efforts.
Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as U.S. consumers increasingly bypass its products for healthier or cheaper options.
Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives, impacting Del Monte's traditional sales.
Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses.
The bankruptcy filing is part of a planned sale of the company's assets, reflecting a strategic move to address financial challenges.
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