138-year old grocery store staple files for bankruptcy

New York CNN Del Monte Foods the -year-old company best known for its canned fruits and vegetables has filed for bankruptcy and is looking for a buyer Late Thursday the company stated it was voluntarily entering Chapter and is going through a sale process for all of its assets Among the company s product lines are a number of well-known kitchen staples including College Inn broths and Contadina canned tomatoes as well as its flagship Del Monte brand After a thorough evaluation of all available options we determined a court-supervised sale process is the majority of effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods stated President and CEO Greg Longstreet in a report Del Monte disclosed it secured million in new funding that will allow the company to remain afloat during the sale process and will keep the company operating as normal as it enters the peak canning season The company listed liabilities estimated between billion and billion according to court documents With an improved capital structure enhanced financial position and new ownership we will be better positioned for long-term success added Longstreet He revealed that the company has faced challenges intensified by a dynamic macroeconomic circumstances notably consumers cutting back on their spending and a growing shift toward spending on private labels Del Monte says that consumer demand has declined causing it to incur increased costs related to surplus inventory that it has had to warehouse and attempt to move off shelves with increased promotional spending according to Sarah Foss global head of legal and restructuring at Debtwire Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives Del Monte got its start in and built its famous cannery in San Francisco in The company maintains that it operated the largest fruit and vegetable cannery in the world by