The bankruptcy of the American giant
“This is a strategic step forward for Del Monte Foods,” announced the general director of Greg Longstreet. The American giant has issued a message in which he admits that “the most effective way to speed up our transformation and creating a stronger and more durable del monte foods” is to sell all company assets. $ 912.5 million was secured to allow Del Monte Foods to go through the sales process and ensure normal functioning during this period. The company has Long -term long -term secured for over $ 1.23 billion.
Del Monte Foods will come back again?
According to documents submitted in the Bankruptcy Court of New Jersey, The estimated value of the company's assets and liabilities is from $ 1 to $ 10 billionwhile the number of creditors is estimated at 10,000 to 25,000. However, what is important, some Del Monte Foods branches outside the United States are not covered by this proceeding and normally continue their business. – thanks to the improved capital structure, better financial situation and new owners We will be better prepared for long -term success – argues Greg Longstreet.
What led to the fall?
– Although we faced the challenges intensified by the dynamic macroeconomic environment, Del Monte Foods has been providing food for almost 140 years and we are still devoted to our mission to expand access to a nutritious, tasty food for everyone – argued the general director. The company indicated that these “challenges” were mainly reduction of expenses by consumers, increasing inflationary costs And an increasing tendency to spend money on own brands. From 2023, the company reduced production. At that time, they also began to get into the hope of reflection, which did not happen.
The factory has already been closed
The bankruptcy application was filed less than a month after Del Monte announced plans for the establishment of the plant and two warehouses in Washington. For this reason, in August layoffs will be carried out there that will affect 51 employees. Del Monte now employs around 2780 employees and has four factories: two in the USA and two in Mexico. Neither the company in the press release nor American media states what will happen to these employees after bankruptcy. – I am deeply grateful to our employees, growers, clients and suppliers, as well as our lenders for their support in helping us achieve our long -term goals – said Greg Longstreet.
What is Del Monte Foods?
The company was founded in 1886 in California. Currently is one of the most recognizable food producers in the USA. In 1907 she built the first canned factory, and until 1909 it ran the world's largest canned fruit and vegetable factory in the world. Her most famous products include Contadin tomatoes, broths and Kitchen Basics decoctions as well as Joyba teas and drinks. In court documents, the company stated that it cooperates with hundreds of agricultural families in the United States and Mexico, and most of its products come from places located near production plants.
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Sources: CNN, Reuters, del Monte Foods, Axiom, Just Food