139-Year-Old Canned Food Icon Del Monte Foods Files for Bankruptcy: Will It Permanently Shut Down?

The USA Leaders

July 03, 2025

Walnut Creek – “Growers of Good.” That tagline once echoed through American homes—appearing on kitchen shelves, lunchboxes, and Sunday dinner tables. For over 139 years, Del Monte Foods stood as a symbol of trust and nourishment, offering canned vegetables, fruits, and broths to generations of American families.

But in a dramatic turn of events, Del Monte Foods files for bankruptcy, marking a critical moment for one of the oldest and most recognized food brands in the United States. On July 1, 2025, the company officially filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey. It now seeks a buyer to secure its future and navigate through a challenging restructuring process.

What Happens Now That Del Monte Foods Files for Bankruptcy?

Despite reporting $1.7 billion in annual sales for the fiscal year ending April 2024, Del Monte Foods posted a net loss of $118.64 million, revealing deep financial cracks. The company, owned by Singapore-based Del Monte Pacific, hopes to stay operational through court-supervised restructuring and asset sales.

A $912.5 million debtor-in-possession (DIP) financing package has been secured from existing lenders to help the company maintain operations during the process. The sale will involve “all or substantially all” of its U.S. assets, though international subsidiaries will continue to operate normally.

Why Did Del Monte Foods File for Bankruptcy?

There isn’t a single cause behind the downfall. Rather, it’s a culmination of long-standing issues and recent shocks:

• Changing Consumer Preferences – Modern consumers are turning away from canned goods and preservatives in favor of fresh, organic, or store-brand alternatives, leaving Del Monte’s traditional product lines behind.

• Steel Tariffs and Inflation – A 50% tariff on imported steel—critical for canning—took effect in June 2025, sharply increasing packaging costs. Combined with grocery inflation, this squeezed Del Monte’s margins severely.

• Excess Inventory and Discounting – Falling demand led to high inventory levels, forcing the company to rely on deep discounts and promotional expenses, which further dented profitability.

• Legal Disputes and Mounting Debt – Years of rising debt burdened the company, culminating in a costly legal dispute with lenders over restructuring terms. Interest expenses ballooned to $125 million in 2025—nearly double the figure from 2020.

Even with growth in newer brands like Joyba (bubble tea) and Kitchen Basics (broths), the gains weren’t enough to rescue the company’s balance sheet.

Industry Shakeup: How the Market Reacts

As Del Monte Foods files for bankruptcy, it becomes the fourth major food and beverage brand to do so in 2025—highlighting broader disruptions in the packaged goods industry.

Meanwhile, competitors are thriving by staying ahead of trends:

These brands have adapted to consumer preferences with fresher, health-centric, and sustainable offerings, giving them a decisive edge over Del Monte’s more traditional portfolio.

What Bankruptcy Means for Del Monte’s Market Share

The announcement of Del Monte’s bankruptcy is expected to further erode its market share, at least in the short term:

• Retailer Uncertainty: Stores may reduce shelf space for Del Monte products in favor of more stable suppliers.

• Consumer Hesitation: Buyers may shift loyalty amid doubts about product availability or quality.

• Competitor Advantage: Brands ready with trend-forward offerings will likely absorb Del Monte’s former share.

Still, the company maintains a 2.91% share of the canned vegetable market—a significant, though vulnerable, position.

Could This Open the Door for New Entrants?

Yes—and fast. As Del Monte Foods files for bankruptcy, shelf space, supplier contracts, and brand partnerships may be up for grabs. Startups and private labels—already gaining ground—could use this as an opportunity to scale up rapidly.

With efficient reallocation of assets under Chapter 11, new brands may enter the space with lower risk and capitalize on the growing demand for fresher, more innovative food products.

CEO Speaks: Strategic Step Forward

Del Monte’s President and CEO Greg Longstreet framed the bankruptcy as a “strategic step forward.” He emphasized that the move will expedite turnaround efforts and stabilize the company under new ownership, despite “macroeconomic headwinds and evolving consumer behavior.”

Whether this optimism translates into real recovery depends on finding a strong buyer—and fast.

Final Reflection on Canned-Food Icon

For millions of Americans, Del Monte is more than a food label—it’s a piece of personal history. The announcement that Del Monte Foods files for bankruptcy marks a sobering moment for the U.S. grocery sector, where even century-old giants are no longer immune to changing tides.

As the brand looks to write its next chapter, the question remains:

Will Del Monte reinvent itself—or become a memory sealed in a can?

Also Read: Canned Tuna Recall 2025: Costco, Walmart, Trade Joe’s, and Other Retailers Stand Cautious!