Del Monte Foods files for bankruptcy

Canned-food giant Del Monte Foods filed for bankruptcy on Tuesday, the company announced in a statement.

Del Monte Foods began voluntary Chapter 11 proceedings and entered into a restructuring support agreement with a group of its lenders, they said.

“This is a strategic step forward for Del Monte Foods,” CEO Greg Longstreet said in a statement. “After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods.”

Del Monte said it has secured $912.5 million in financing from some of its existing lenders to support itself through the proceedings.

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The nearly 140-year-old company is known for its Del Monte brand of canned fruits and vegetables, broth and stocks brand College Inn and tea brands like Joyba.

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Del Monte Foods said it intends to remain open and continue operations throughout the bankruptcy.

Certain of its non-U.S. subsidiaries are not included in the Chapter 11 proceedings and will continue to operate as usual, the company added.

A filing with the New Jersey bankruptcy court obtained by Reuters estimates the company’s assets and liabilities at between $1 billion and $10 billion, while the number of creditors is estimated at between 10,000 and 25,000.

Reuters contributed to this report.

Original article source: Del Monte Foods files for bankruptcy