Del Monte, One of America's Biggest Household Brands Files For Bankruptcy

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veryparcel@reddit

Del Monte? I usually refer to it under a different name.

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hawaiithaibro@reddit

"10-25,000 creditors according to the article"

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reincarnateme@reddit

Private equity buys businesses, takes the equity out and leaves behind creditors and bankruptcy

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AzureWave313@reddit

I’d go with private equity as well. They saw a “good deal” and took it. The tariffs and aluminum, climate change and ICE probably didn’t help either. I genuinely wonder who the buyer is?

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OracleofFl@reddit

Ding, ding, ding! Give the man a cigar!

A classic no less. The great Texas Pacific Group, then KKR owned them (how could TPG left any assets for KKR to find beats me) and then it was spun to one bandit after another.

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Take your pick. Mango crops have sucked for two years in a row. Pineapple crops in the same boat. Local producers are losing field workers (but that won't impact what is going on right now, that will impact after harvest in the fall/winter, when the harvest overages that don't go to fresh, start getting canned up). Tariffs on steel (cans) and imported goods (like pineapples and mangos in their fruit mixes) would definitely take a chunk as well, and those are impacting right now. Funding is also determined by future outlook, so if it looks like crops will continue to be bad, tariffs aren't going away, workers may be a problem in the future, from a bank's perspective I'm going to be hesitant to provide funding, and if I do, I'm going to charge a chunky interest to cover my ass. Potentially "The Cannery" in the coal mine. ;)

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Indigo_Sunset@reddit

Even now, I know I have savoured the hot taste of life,

Lifting green cups and gold at the great feast

Just for a small and forgotten time...

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milk_the_ham@reddit

Props for "cannery in the coal mine." Love me some solid word-play.

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CannyGardener@reddit

When I read the article and the original production facility was called "The Cannery" I just couldn't pass it up ;)

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GuiltyYams@reddit

Canned food consumption has been on the decline for ages due to people shifting to healthier alternatives. Aluminum was rising before tariffs. Add tariffs to the mix and it's like icing on the cake.

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RamonaLittle@reddit

Also if you're shopping by any method other than going into a store and selecting cans yourself (since of course many of us have been ordering for shipping/delivery/curbside pickup throughout the pandemic), it's literally impossible to get cans that aren't dented. I've completely stopped buying canned goods because apparently there's not a single retailer that can figure out how to get them to me not dented to hell.

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WyndWoman@reddit

Agreed. I'll buy frozen over canned anytime. Right now I only have canned tomatoes, beans, tuna and chicken.

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melkor555@reddit

Canned grapefruit is one of life's greatest pleasures.

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Lopsided_Elk_1914@reddit (OP)

i didn't even know it was a thing!! now you've got me wanting to try it!!

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supersonic3974@reddit

Canned mango is awesome. It's already pre diced and everything. Keep a can in the fridge and you have nice cold fruit ready to go

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WyndWoman@reddit

I don't care for grapefruit in any form, but you do you!

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Content_Geologist420@reddit

For a pending sale it seems. Its a nothingburger

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No_Profit_2906@reddit

Little bit of both

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lavapig_love@reddit

Climate change. Tariffs and deporting workers are just the consequences of it.

Growing our own food is hard.

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OoPieceOfKandi@reddit

Tbh pretty silly to think that.

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JamesRawles@reddit

Or piss poor operations. They were a nightmare scheduling appointments for.

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CannyGardener@reddit

Like any of the big guys. I have the same issues with Dole.

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ArcherConfident704@reddit

I've always seen Del Monte as a store brand, so I'm very confused about these generic pricing comments. Aren't they basically a white label?

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--Cinna--@reddit

No? why on earth would you assume Del Monte is a store brand when you can get its products everywhere? Store brands are called that because they're owned and sold by specific stores. Great Value is only sold at Walmart, for example

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ArcherConfident704@reddit

Where do you think Walmart and other companies get their generic products? They just switch the labels. That's how almost all of these companies work, they all use the same shit. They don't "own" any of it.

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--Cinna--@reddit

they own the rights to the brand label, which is what we're talking about. also whether its in-house or private labeling depends on the products. Some are made in house, either fully or partially.

stupidity and hostility is not a winning combo, my friend

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ArcherConfident704@reddit

Fuck you

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ArcherConfident704@reddit

I guess I meant equitable to a store brand. Seeing as it's accessible everywhere, like a store a brand...you know, like a brand that you can "get everywhere." That's literally how white labels work.

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nonlethaldosage@reddit

You trump haters really think a month of tariffs caused this no wonder he won the election if this is the average intelligence of a lib voter.they have been losing money ever since they were bought out in 2014 and got a ton of extra debt

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moosenazir@reddit

Other issue is they can’t compete with Mexico or South America for labor cost. 10 dollars a day in Mexico for a line worker. 4 dollars a day for a line worker.

America has a big problem on its hands.

I worked with a sales guy in the industry. A lot of store brand or private label is switching to being made in Mexico or south America.

We will watch canned food manufacturing move south in our lifetimes. In 40 years 90% of canned foods will be made across the border.

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ThisWillPass@reddit

Ballooning interest rates on loans by private equity.

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AntiSonOfBitchamajig@reddit

So... this is going to throw the canned fruit market on its side for a while?

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Rob1iam@reddit

No, because it’s chapter 11 bankruptcy which is debt restructuring, not chapter 7 which is liquidation. The company will continue to operate and renegotiate its obligations with creditors. It will probably also sell a controlling equity share to a private equity firm to raise capital. For big companies, chapter 11 normally means survival.

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NomadHomad@reddit

Private equity 😬

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aztechunter@reddit

It will probably also sell a controlling equity share to a private equity firm

Yeah my main guess is their death will be slow and agonizing if the Federal policies don't kill it first

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Rob1iam@reddit

Hey you never know, American Airlines and General Motors went bankrupt and successfully rehabilitated under PE management. It’s not always a bad thing

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AntiSonOfBitchamajig@reddit

private equity....

Pffff... private equity means they'll gut the company and it'll fall off a cliff in 2 years or so.

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agent_mick@reddit

I am a victim of this type of restructurijg. Can confirm

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GuiltyYams@reddit

So... this is going to throw the canned fruit market on its side for a while?

IMO, yes. Reasons include:

rising aluminum prices
combined with tariffs
debt restructuring requirements may include product line consolidation
entire product lines may discontinue leading to less varied products available
some manufacturing plants may be sold, may be renovated, or otherwise offline, disrupting shipping
product labels may change which can sometimes cause a temporary stoppage as the old are discontinued and new applied

Probably other things too that I'm not considering right now.

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zanybrainy@reddit

I may be wrong, but the canned fruit I get is in steel cans or the snack packs are in plastic.

Which fruit comes in aluminum cans?

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GuiltyYams@reddit

I meant steel cans, actually mate. There is also a tariff on steel. Thanks.

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Coolenough-to@reddit

Its not an American comoany anymore.

"Del Monte Foods, the company behind brands like Del Monte, Contadina, and S&W, is owned by Del Monte Pacific Limited (DMPL). DMPL is a Singapore and Philippines-listed company with ownership structure primarily made up of NutriAsia Pacific Ltd. and Bluebell Group Holdings Limited, both controlled by the Campos family of the Philippines."

So its not a good example of an American business adversley affected.

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Remote-Letterhead844@reddit

Maybe people going for the store (generic) instead of name brand? I know I have

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Jobbo0507@reddit

I have -$0.89 for generic peas vs $1.59 for Del Monte. I’ll take the generic.

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LassenDiscard@reddit

I finally just started buying store brand tomato sauce.

No difference to my unrefined pallet.

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Irverter@reddit

*palate

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LassenDiscard@reddit

Maybe I use the tomato sauce to paint.

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tryatriassic@reddit

The pallet doesn't care either

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skyblueerik@reddit

Most store brand products I've tried (specifically, great value) are just as good S name brand, or at least close enough, with significant cost savings. No way am I spending twice or more on something that doesn't taste any better than the generic.

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GardenEmbarrassed371@reddit

They produce generic brands too, I bet it's due to some stupid operations decisions.

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aGringoAteYrBaby@reddit

Not our cans!!!

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Accomplished-Tell674@reddit

I find it hard to believe that 4ish months of wishy-washy tariffs are the reason for this. I can’t imagine it helped, but this seems misleading.

Also, this is no big deal. Companies file chapter 11 all the time just to settle tabs and debt. They aren’t going anywhere.

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OrinThane@reddit

Yes. All of these companies are incredibly over-leveraged.

Has anyone wondered why prices continue to rise despite how much we have developed as a country?

Its because our government has been avoiding a restructuring of the economy in order to maintain the wealth of its donors. A prime example is agriculture, a major driving force of continuing to allow immigration into our country is because it keeps labor costs low, large farm owners sell more produce because its cheap and they pocket more of the profit for themselves instead of spending it to improve their farm. The problem is this has a cascading effect on the rest of the economy because, though maybe food is low, housing is not or consumer goods are not. Nothing is balanced. What does the government do?

It tries to solve for other industries where this occurs by constantly outsourcing to cheaper labor OR easing loan requirements for debt to allow people to buy goods on credit (read a “monthly subscription” to pay your bills). This all creates bubbles, why? Because we avoid natural collapses in price that would force business to optimize to drive costs down and when those collapses do happen we only make the debt lender or corporation whole. This transfers wealth upward and prevents a market from evolving and pricing in a proper minimum wage.

Prices are rising so dramatically because ICE is removing all of our cheap exploited labor and companies, which have operated in an environment of extremely low labor can’t swallow the added cost. Why? Because the average American wage isn’t priced to afford the true cost of food. Why? Because companies have kept their wages low to maintain ever higher profits by using artificially cheap (slave) labor. Companies can’t afford to pay their workers more because they can’t absorb the added cost because of tariffs that cut into their profits. This is a downward spiral and is going to collapse our economy.

Multi-national corporations are in for a very very rough 10 years but, more importantly (because fuck them, they made this mess and are making camps to imprison the immigrants they exploited), so are we. We better hope that we come together like we did in the 1930s because we are facing something existential. It was all caused by greed. It was all caused by exploitation.

Right now the government is praying Ai and robotics are going to fix everything but the real question is if we can transition fast enough. And if we do are we going to be able to train people to do meaningful work again now that they’ve been doing busy work for 60 years.

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Leopold_Porkstacker@reddit

Can’t eat a robot.

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OrinThane@reddit

Nope, but if you can build a robot that picks food and pay a mechanic to keep it serviced it means less people on the farm and more people owning farms.

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Leopold_Porkstacker@reddit

Pretty much all crops that can be mechanically picked and processed are already being done.

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OrinThane@reddit

I saw a video of a new robot picking broccoli yesterday. I’m not saying its going to work, I’m saying people are working on the problem and that is what we need.

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AzureWave313@reddit

Do you really think they are going to be generous with the profit-gain from automation and try to solve wealth inequality? No. They’re going to continue to pocket the profits and offload the “cost” to actual humans who are out of a job because a robot can now do it. Homelessness and a poverty explosion are inevitable and they’re already building the mass-surveillance system and those camps are for the poor next.

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OrinThane@reddit

Not at all. Will they have a choice? Too soon to tell.

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AzureWave313@reddit

We’ve all known deep down that it’s been extreme greed the entire time. A “might makes right/i got mine so fuck you” attitude. Thank you for the detailed explanation.

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helluvastorm@reddit

I think it’s a result of people switching to store brands because of inflation/tariffs. People got to save money where they can. Can no longer afford brand loyalty

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frequent_flying@reddit

Yeah but aren’t store brands usually produced by the name brands, just at a slightly lower minimum quality threshold and obviously sold wholesale to stores at a lower price? My completely speculative assumption would be Del Monte has some such store brand agreements as part of their revenue stream, so they’d still be making profitable sales revenue, just not quite as profitable as selling their own higher priced brand. But I could be wrong about that being how it works in canned food and/or maybe they aren’t involved in any store brands agreements.

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Ricky_Ventura@reddit

aren’t store brands usually produced by the name brands

Only when the name brands are the absolute cheapest price.

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CannyGardener@reddit

This is likely the case. All the big production lines, across most of the food industry, does this. Keeps the lines full. You are right though, they don't make the same margin on those products, so if everyone switches to the lower margin product in a big wave, then finances can get pretty fucked. =\

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mildlyornery@reddit

Del Monte just doesn't have enough banana republic related controversies to survive. They are barely a footnote in the Apartheid. Now Chiquita. That's an evil fruit company that will make it in the long run. It may not be the same name as before, but they did enough sketchy stuff to last.

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SeaWeedSkis@reddit

⬆️

Sadly, in my opinion there's a definite quality reduction between store brand and brand name when it comes to some products. We were completely turned off store brand canned green beans as they were noticeably bitter compared to the brand name ones.

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aedallas@reddit

Facts

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EdgeCityRed@reddit

Not a huge canned fruit buyer, but I definitely buy the Contadina tomato paste and other tomato products and the College Inn stock and broths.

Canned items have become REALLY expensive, though. This brand aside, I was shocked at the price of chili recently. (I can make chili from scratch, but I like to have it as preps, because yum, chili.)

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Repulsive-Choice-130@reddit

Grow your own food. It is healthier when you grow organic, it's close to home, you can pick at peak freshness, and you can preserve your extras.

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Lopsided_Elk_1914@reddit (OP)

that's an ideal solution, but not available to everyone. i always grew things, enjoyed it very much. but this year, my health simply isn't allowing me to do so. hopefully next year.

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runawayjimlfc@reddit

lol their products suck ass. That’s what it’s a result of.

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Thiezing@reddit

The administration is more interested in TikTok than American companies and jobs.

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AzureWave313@reddit

Hmmm. Wonder why? Wonder what China has to do with all of this.

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Sweaty-Feedback-1482@reddit

Ah, Del Monte... Enjoy them, old man. They will be…your last

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ArbutusATX@reddit

I came here looking for this. Was not disappointed.

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pfry295@reddit

The residents (bang) are trying (bang) to nap! (Bang)

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AToadsLoads@reddit

My guess is irresponsible financing more than any one policy change. A company of that size doesn’t fold in less than six months due to policy change.

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AresValerous@reddit

Del Monte are two separate companies using the same name: 1) the canned goods company that was spun off a while ago and is going into bankruptcy and then 2) Del Monte Fresh, which is doing just fine — fresh fruits and vegetables — pineapples, melons, bananas, etc. Super confusing.

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HabaneroShits@reddit

Short answer: Interest payments exceed company revenue. Piss poor business decisions led to this situation.

The company sought court protection in New Jersey, saying it’s carrying roughly $1.245 billion in secured debt. Del Monte blamed its Chapter 11 filing on multiple factors, including a costly buildup of excess inventory resulting from elevated demand during the COVID-19 pandemic and significant debt that has become more expensive as a result of rising interest rates.

The firm’s cash interest expense increased from $66 million in 2020 to $125 million in the 2025 fiscal year, Goulding said. The interest expense “materially exceeds” Del Monte’s current projected earnings before interest, taxes, depreciation and amortization and constrained its liquidity, he said.

https://www.ttnews.com/articles/del-monte-files-bankruptcy

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Skinny-on-the-Inside@reddit

Do people really eat that much canned fruit anymore?

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Carrie_1968@reddit

I have shelves and shelves of canned fruit, much of it Del Monte. Stacks of canned Del Monte zucchini, spinach, and several styles of tomatoes. And don’t even ask about the Del Monte 24 oz pasta sauce collections.

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Skinny-on-the-Inside@reddit

Right you store it for emergencies but do you regularly eat canned food?

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Carrie_1968@reddit

Absolutely. And I restock accordingly.

My blue recycle bin consists of cleaned out food cans and cardboard from Amazon and Walmart.com’s deliveries of the aforementioned cans of food.

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Food_First@reddit

You're on a prepped subreddit

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Skinny-on-the-Inside@reddit

I mean normal people and let’s not pretend preppers eat canned food, they buy it, store it and when it’s about to expire they donate it to food banks.

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QHCprints@reddit

This guy preps.

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Skinny-on-the-Inside@reddit

I am a woman :)

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QHCprints@reddit

Fixed ;)

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agent_mick@reddit

They didn't just do fruit, did they?

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Hour-Onion3606@reddit

No, they had been expanding recently too. Bought Kitchen Basics - broth / stock brand - from McCormick.

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winterbird@reddit

I eat canned peaches at least once a week.

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Rikula@reddit

My household uses canned beans, tomatoes, and pineapples for certain dishes for convenience.

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TanglingPuma@reddit

Not sure if it’s “a lot” of people, but I work within a low income community that definitely can’t afford paying by the pound for fresh fruit. They can get a can of multiple pears or peaches for .89 year round or they can pay $2.99+ per pound for basically one and a half of single fruits. Plus many work multiple jobs and need easy food that won’t go bad quickly. Canned fruit is king amongst the people I serve.

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ddesideria89@reddit

Can I have a list of foods people should not care for anymore, you know, just in case?

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Skinny-on-the-Inside@reddit

I have canned fruit but it’s for emergencies. It has too much sugar and I prefer fresh food.

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TheStephinator@reddit

It’s not hard to find fruit in its own juice vs. syrup.

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MakeYourTime_@reddit

I use their canned tomatoes to make sauce..

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Pontiacsentinel@reddit

They make other products, too. I buy plants of canned goods year round, name brands rarely.

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twothumbswayup@reddit

my kids eat the fruit cups for lunch all the time - i assume a ton of other kids do too, and im going to go even further and assume this is the only fruit some kids even eat.

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trailquail@reddit

They also produce canned vegetables and I believe some tomato sauce/paste products that are sold under a different label. Some of the store brand stuff may also be produced by them even though it isn’t sold as Del Monte.

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02meepmeep@reddit

Damn it. Of course they did. I had some stock in del Monte. Kiss of death if I buy stock I guess.

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Sea-Negotiation3515@reddit

Ah, Del Monte. Enjoy them old man, they will be your last.

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Everyone_is_808@reddit

They closed their plant in sleepy eye about 5 years ago. I'm guessing the company has been doing bad for a while now.

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oldbutfeisty@reddit

I'd assume they had debt come due, couldn't afford to roll it over as new bonds would demand much higher rates due to noted issues. Maybe current business is OK, but bondholders look forward too.

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Potato2266@reddit

This is insane! They have huge market share in so many products and is a well recognized brand name worldwide.

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DaNostrich@reddit

Welp

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scothc@reddit

I have dispatched loads out of a local del monte plant and it was awful. Wait times of 4/6/8 hours for my local guys in daycabs. We stopped taking any loads that ship out of there and when a broker says the city name, first question i ask is "is it del monte"

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crockett05@reddit

oh well

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Famous_Bit_5119@reddit

I see a lot of successful companies claiming bankruptcy after years of stripping the company and paying huge dividends and executive pay and management fees., Then when the company has nothing left, it's bankruptcy time to sell it off or reorganize.

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Bulky-Captain-3508@reddit

I've heard it's a result of being purchased by a parent company and mismanagement. Selling off sections of the company and borrowing against the remainder in a time where sales are impacted and raw goods/labor prices increase.

I do not have articles to reference, so take it for the hearsay it is.

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Herban_Myth@reddit

Yikes

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LowBarometer@reddit

Make America Great Again includes bankrupting iconic brands like Del Monte?! Who would have known.

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ElderberryQuirky2497@reddit

Harley Davidson will be next. Nice going you orange piece of crap

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Slow_Tap2350@reddit

No major corporation goes bankrupt after 100 days of chaos. This must have been years in the making.

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pbjtech@reddit

I always wondered how a fruit grown in argentina gets canned in the phillipines and sent to the US made any kind of economical sense. guess it didn't after all

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Eatthebankers2@reddit

Wonder how many voted for this crap.

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Diaza_Kinutz@reddit

Ah so that's why I can't find their canned spaghetti sauce anymore. My kids loved it.

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Eatthebankers2@reddit

Nooo! I love their mushrooms!!

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Fantastic_Baseball45@reddit

Henry Kissinger said Control the oil and you control the nations. Control the food and you control the people. Harvested produce heads for the cannery, providing seasonal jobs in the community and groceries for the market.

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dantevonlocke@reddit

Markiplier got the last laugh.

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Immediate-Row-6922@reddit

Articles suggest a consumer turn from canned vegetables to frozen. Personally, I blame the Liver King.

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felixblacke@reddit

Shhhh, if Liver King finds out you're saying that you'll be his next target after Rogan.

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felixblacke@reddit

Tariffs were probably a part of the equation. But it looks like consumer demand for canned goods has been shifting. Along with some bad financial moves the last few years. It's also worth noting bankruptcy for them is a strategic move to try and restructure/pivot. They aren't necessarily going to be shutting down anytime soon.

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