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Delmonte, a producer of canned fruit and vegetable products based in Walnut Creek, California, has filed for bankruptcy and is seeking buyers, the company announced Monday.
The company, which has been in nearly 140 years, said in a news release that it will enter into Chapter 11 procedures as part of a restructuring assistance agreement with lenders.
DelMonte president and CEO Greg Longstreet said in a statement that bankruptcy filings are “strategic progress” for the company.
“After a thorough assessment of all available options, we decided that it was the most effective way to accelerate turnaround and create a stronger, lasting Del Monte Food,” Longstreet said. “Improved capital structure, strengthening financial position and new ownership will make you better position for long-term success.”
Cans of peas and carrots will move along the conveyor belt after being labelled at the Del Montefuts Inc facility in Mendota, USA on Friday, June 23, 2017. Peas are on average canned and cooked within four hours of harvest. Photographer: Daniel Acker/Bloomberg via Getty Images
The California-based producer said it secured more than $912 million in commitments from lenders and helped fund the company through litigation.
Delmonte said in the release it intends to remain open and continue operations through bankruptcy.
It said the US Bankruptcy Court filing for the District of New Jersey is between $1 billion and $10 billion in both DelMonte’s estimated liabilities and assets. The filing estimates that the number of creditors is between 10,000 and 25,000.
CBS News reported that Del Monte has faced challenging challenges over the past few years, making efforts to reduce it by issuing layoffs and closure of the plants.
Other large companies filed for Chapter 11 bankruptcy to rebuild. Decorative retailers from WeightWatchers, Rite Aid, Publishers Clearing House and Home have filed for Chapter 11 bankruptcy this year.
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