It’s a sad, sad day when a company as old as Del Monte Foods files for bankruptcy. But that’s what happened late last week—the company with a 138-year history filed for Chapter 11, with plans to sell all of its assets. According to the company, it has secured a whopping $912.5 million in funding to stay in business while it tries to find a buyer.
President and CEO Greg Longstreet attributes the company’s shortcomings to a shift in the macroeconomic environment, noting that customers are not only cutting back on spending altogether, but are also more inclined to purchase private labels. “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,” he said.
What does this mean for those of us who rely on the company’s fruits and veggies? Well, it’s nothing to be concerned about just yet. Del Monte Foods filed numerous motions that will “enable it to continue business operations in the ordinary course and on an uninterrupted basis, including delivering high-quality food products that are healthy, delicious, and convenient,” according to a press release.
In the meantime, I’d stock up on your favorites while you still can.
