139-Year-Old Iconic Grocery Brand Files for Bankruptcy - What to Stock Up On Now

Certain brands are recognized worldwide based on their history and advocacy for helping consumers save money shopping, and Del Monte is one of them. With products available in over 80 countries and business operations in 21 countries, it's tough to believe this long-standing food processing company has declared bankruptcy.

On July 1, 2025, Del Monte Foods announced it was voluntarily entering Chapter 11. The nearly 140-year-old company will begin a court-supervised sales process. By securing $912.5 million in new funding, the company will remain financially stable during the sale of its assets, allowing it to continue operating during peak canning season.

With a net worth of around $1.66 billion, it's surprising that Del Monte Foods has filed for bankruptcy. Here are eight reasons why (with number eight offering some hope).

The pandemic forced millions of people to stay at home, and demand for shelf-stable products hit record highs. Production ramped up. However, when things returned to normal and demand dropped, Del Monte was left with excess inventory, which it stored, wrote off, or sold at substantial losses.

The changing global economy exacerbated this pandemic misstep. A domino effect ensued, as consumers began opting for private labels over national brands.

Adding to the post-pandemic struggle, rising interest rates have nearly doubled Del Monte's annual interest expenses since 2020. Court documents describe this unfolding as "historic lows" in liquidity.

This rising debt burden is also linked to the company's 2014 acquisition of Del Monte Foods by Singapore-based Del Monte Pacific Ltd. This deal was financed by debt, which created a slippery slope, and the company fell deeper into financial hardship.

Food prices have increased faster than overall inflation. Certain products, like eggs, are expected to increase by 33.2% in 2025. In response, people are buying less expensive store brands.

Data shows that consumers trust the quality of cheaper private labels, with 47% of shoppers stating that these alternatives are just as good as brand-name products. However, reviewers say Del Monte is reasonably priced and one of the best-tasting.

The majority of Del Monte products are canned, which has increased the cost of goods sold. Rising tariffs on steel are intended to target foreign competition, despite warnings from food and beverage industry experts about the potential implications.

Considering that 70% of the tin mill steel needed to produce canned products is imported, Del Monte is feeling the impact.

The decision to move away from name-brand canned foods isn't just a budget-based play. Shopper preferences are shifting, as many consumers are no longer interested in purchasing canned goods with additives. They want fresh food.

Private-label competitors (or store brands) hit record sales in 2024, growing by 3.9% (outpacing the 1% growth of national brands). This growth further eroded Del Monte's market share.

In the U.S., store brands have a 22% dollar share of consumer product sales, including canned goods. This trend is closely linked to inflation.

A legal dispute over debt restructuring contributed to Del Monte's financial struggles. Creditors claimed that the restructuring plan breached previous loan agreements. Although the case was settled in May 2025, the lawsuit resulted in an additional $4 million in annual interest payments.

This settlement, when combined with challenges like declining sales of canned goods, led to a liquidity crisis. The bankruptcy filing was announced shortly after.

Lastly, Del Monte filed for bankruptcy, claiming that this action is part of a larger plan. Greg Longstreet, President and CEO of Del Monte, said in a statement that this filing is a "strategic step forward" for the company.

The goal is not to close, but to position the company for long-term success. Del Monte plans to achieve that objective by improving its capital structure, enhancing its financial position, and welcoming new ownership.

Del Monte is carrying approximately $1.245 billion in secured debt. By filing for Chapter 11 bankruptcy, Del Monte can reorganize its business while staying protected from creditors. Since certain non-U.S. subsidiaries aren't included in the proceedings, they will continue operations as usual.

During this process, secured financing will fund operations while the company renegotiates debt and sells assets.

While there are consumer concerns about canned and processed foods versus fresh alternatives, Del Monte is highlighted in the media as a company committed to providing quality, nutritious food and supporting community programs.

Del Monte has also been recognized for its sustainability efforts and use of fresh ingredients, most of which are grown within 100 miles of the company's manufacturing facilities. Over 80% of Del Monte Foods' fruits and vegetables are sourced in the U.S, supporting local communities.

"While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all," said the company's CEO and President.

While the price of Del Monte products may rise, canned or jarred varieties of some fruits and vegetables may still be more affordable compared to fresh or frozen options. With longer shelf lives and the ability to eat without chilling, freezing, or cooking, you will use less energy, reduce food waste, and save money on groceries.