Del Monte Foods Files for Bankruptcy

Del Monte Foods, a 139-year-old company known for its canned fruits and vegetables, filed for Chapter 11 bankruptcy protection. This move is part of a planned sale of the company's assets, driven by declining sales as U.S. consumers increasingly opt for healthier or cheaper food options. The company, owned by Del Monte Pacific, has also faced challenges from increased debt since its 2014 acquisition, rising interest expenses, and a 50% tariff on imported steel imposed by Donald Trump, which increased can prices. Despite some growth in its Joyba bubble tea and broth brands, it was insufficient to offset the weaker performance of its signature canned products. Del Monte Foods secured $912.5 million in debtor-in-possession financing to maintain operations during the sale process.