Del Monte Foods, best known for its canned vegetables and fruits, filed for bankruptcy earlier this week and is looking for a buyer. The nearly 140-year-old brand announced on Tuesday that it is voluntarily entering Chapter 11 as “part of an overall strategic balance-sheet restructuring.”
“A court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods,” said president and CEO Greg Longstreet in a statement.
Del Monte Foods has secured a $912.5 million commitment from its lenders to support the company’s operations through the sales process. Chapter 11 bankruptcy, sometimes referred to as a “reorganization,” allows companies to operate under existing management while addressing existing liabilities under court supervision.
Yet the effect of Del Monte’s bankruptcy extends across the Pacific Ocean to Southeast Asia. Del Monte Foods’ parent company is Del Monte Pacific, based in the Philippines.
Del Monte Pacific announced in a Wednesday filing on the Singapore exchange that it will deconsolidate its U.S. subsidiary. The board of Del Monte Pacific also decided not to provide further support to Del Monte Foods, meaning that the subsidiary’s lenders will now appoint a majority of its board members. Additionally, Del Monte Pacific has transferred 25% of its ownership stake to lenders.
In June, Del Monte Pacific skipped a debt payment to Del Monte Foods’ lenders. The parent company will now assess the financial impact of the deconsolidation of its subsidiary.
Del Monte Pacific added that its investment in Del Monte Foods was valued at $579 million as of Jan. 31, 2025. Del Monte Pacific and its affiliates also have a net receivable of $169 million from Del Monte Foods as of the same date, according to the statement.
Del Monte Pacific, No. 142 on the Southeast Asia 500, reported a 0.3% rise in revenue last year, reaching $2.43 billion. The U.S.-based Del Monte Foods contributed 72% of the group’s revenue.
Del Monte Pacific’s history with Del Monte Foods dates back to 1926, when the U.S. company began operations in the Philippines. In 1996, Del Monte Corporation divested its Filipino operations, establishing Del Monte Philippines as a separate company. Del Monte Philippines became Del Monte Pacific in 1999.
The two companies were reunited in 2014, when Del Monte Pacific acquired the Del Monte Corporation’s consumer food business from KKR for $1.68 billion.
Fresh Del Monte Produce, which sells fresh fruits and vegetables, is a separate U.S.-based company, spun off from Del Monte Corporation in 1989.
Del Monte Pacific is owned by the Campos family, one of the wealthiest families in the Philippines, with a net worth of $940 million according to Forbes estimates.
