Del Monte Foods, a 138-year-old American canned goods icon, has filed for Chapter 11 bankruptcy as Trump’s soaring tariffs and inflation push the “original plant-based food company” to seek a new owner to survive in today’s challenging economy.
Key Takeaways
- Del Monte Foods initiated Chapter 11 bankruptcy proceedings on July 1, 2024, in the U.S. Bankruptcy Court for the District of New Jersey after 138 years in business.
- The company has secured $912.5 million in financing to continue operations while seeking a new owner to strengthen its financial standing.
- Recent increases in steel and aluminum tariffs (doubled from 25% to 50% on June 4) have significantly impacted the canned foods industry.
- Changing consumer preferences toward healthier alternatives and private label products have eroded Del Monte’s market position.
- This is the fourth major food and beverage company to file for bankruptcy in 2024, signaling broader economic challenges in the industry.
American Food Icon Seeks Strategic Restructuring
Del Monte Foods, self-described as “the original plant-based food company,” has become the latest victim of Trump’s economic policies and changing consumer trends. The 138-year-old producer of canned fruits and vegetables filed for Chapter 11 bankruptcy protection on July 1, joining a growing list of American food companies struggling to stay afloat. The proceedings began in the U.S. Bankruptcy Court for the District of New Jersey, where the company disclosed estimated assets and liabilities between $1 billion and $10 billion, with potentially up to 25,000 creditors affected by this financial restructuring.
Company leadership has framed this move as a strategic necessity rather than a business failure. “This is a strategic step forward for Del Monte Foods,” said CEO Greg Longstreet. “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.” The company has secured $912.5 million in financing commitments from existing lenders to maintain operations during the sale process, ensuring that its products will remain available on store shelves across America.
The 138-year-old company, best known for its canned fruit and vegetables, announced that it is voluntarily entering Chapter 11 and plans to sell all of its assets https://t.co/Yg3uuWtZVI
— FOX 8 New Orleans (@FOX8NOLA) July 2, 2025
Trump’s Tariffs and Inflation Create Perfect Storm
The timing of Del Monte’s bankruptcy filing comes as no surprise to economic observers watching the impact of the Trump administration’s policies on American manufacturers. The doubling of tariffs on steel and aluminum from 25% to 50% on June 4 has severely impacted companies like Del Monte that rely heavily on metal packaging for their products. These increased costs, combined with persistent inflation driving up production expenses, have created a challenging business environment for food producers who cannot easily pass these costs onto budget-conscious consumers.
“Del Monte says that consumer demand has declined causing it to incur increased costs related to surplus inventory,” said Sarah Foss, legal analyst commenting on the bankruptcy filing.
The company’s financial troubles are not solely attributable to recent economic pressures. Shifting consumer preferences toward fresh or frozen foods over canned options have gradually eroded Del Monte’s market position. Additionally, price-conscious shoppers have increasingly turned to private label alternatives, further squeezing the margins of established brands like Del Monte, which owns other household names including Contadina, College Inn, Kitchen Basics, JOYBA, Take Root Organics, and S&W.
Part of a Troubling Economic Trend
Del Monte’s bankruptcy filing is part of a concerning pattern in the American food industry. It stands as the fourth major food and beverage company to file for Chapter 11 protection this year, following Hearthside Foods and Harvest Sherwood Food Distributors. This trend reflects the broader economic challenges facing American businesses under the current administration, where inflation, supply chain disruptions, and regulatory burdens have created an increasingly hostile environment for manufacturing and food production companies to operate profitably.
“Consumers are cooking at home at the highest levels since early 2020,” said Mick Beekhuizen, commenting on broader industry trends affecting companies like Del Monte.
While Del Monte’s non-U.S. subsidiaries will continue normal operations outside the bankruptcy proceedings, the fate of this iconic American brand now rests on finding a buyer willing to invest in its future. Established in 1886 with its first San Francisco cannery built by 1907, Del Monte has weathered many economic storms throughout its 138-year history. However, the combination of Trump’s economic policies, changing consumer habits, and increased competition has forced what was once proudly described as “the largest fruit and vegetable cannery in the world” to seek protection from its creditors while charting a path forward in today’s challenging business landscape.
