Walnut Creek-based Del Monte Foods announced Tuesday it has filed for Chapter 11 bankruptcy protection and is seeking a buyer.
The company and certain affiliates and subsidiaries filed in the U.S. Bankruptcy Court for the District of New Jersey.
The company said it entered into a restructuring support agreement with a group of its lenders holding some of the company’s term loan indebtedness.
“This is a strategic step forward for Del Monte Foods,” said Greg Longstreet, President and CEO of Del Monte Foods, 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.”
Longstreet said, with an improved capital structure, enhanced financial position and new ownership, the company will be better positioned for long-term success.
“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,” Longstreet said.
Del Monte filed customary “first day” motions that it said, upon court approval, will enable it to continue business operations.
Some of the company’s non-U.S. subsidiaries aren’t included in the Chapter 11 proceedings and continue to operate as usual.
More information about the bankruptcy case can be accessed online, via email, or by phone by calling toll-free 833-228-5497 (or 714-263-3709 for calls originating outside of the U.S.).