Del Monte Foods has filed for Chapter 11 bankruptcy in a New Jersey court, marking a major turning point in the company’s struggle with mounting debt and sluggish sales. The move comes less than a year after a controversial debt restructuring triggered lawsuits and raised questions about the company’s long-term viability.
Court documents reveal that Del Monte is burdened with around $1.245 billion in secured debt. The company pointed to a perfect storm of post-pandemic inventory surplus and the burden of rising interest rates as key drivers behind the bankruptcy decision.
To maintain operations while undergoing restructuring, Del Monte has secured $165 million in debtor-in-possession financing. This funding will support business continuity and aid in the planned sale of most or all of the company’s assets.
“This agreement allows us to move forward with a sale process while continuing to operate and serve our retail partners,” the company said in a statement, signaling its intent to remain active during the proceedings.
The bankruptcy filing follows years of financial pressure stemming from Del Monte’s 2014 acquisition by Singapore-listed Del Monte Pacific Ltd. (DMPL). The purchase, heavily financed through debt, left the U.S. division saddled with high interest payments. Chief Restructuring Officer Jonathan Goulding disclosed that Del Monte’s annual interest expense nearly doubled from $66 million in 2020 to $125 million in 2025 — outpacing its earnings and tightening cash flow.
In 2023, the company drew fire for shifting key assets in a drop-down transaction to secure fresh financing — a move that sidelined some lenders and led to a lawsuit over a $725 million loan agreement.
Despite the controversy and financial instability, Del Monte says it remains focused on ensuring a seamless transition and continued service to customers as it seeks new ownership.