Del Monte seeks new owner after piling up debt owed to thousands of creditors

One of America’s top canned foods companies is looking for a reset.

Grocery store mainstay Del Monte Foods filed for Chapter 11 bankruptcy this week, saying it wants to restructure to shed old debts and remain in business.

The nearly 140-year-old brand is looking to sell its assets following recent plant closures and a controversial $240 million debt restructuring deal last year that prioritized some creditors over others.

CEO Greg Longstreet said in a statement that a “court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods.”

That doesn’t mean the packaged-food company, best known for offering a wide selection of canned fruits and vegetables, will disappear from store shelves.

The company said it has secured $912.5 million in financing from existing lenders, which would allow it to remain in business while it looks for a buyer.

“With an improved capital structure, enhanced financial position, and new ownership, we will be better positioned for long-term success,” he said.

Del Monte reported in filings with the US bankruptcy court in New Jersey that it owed more than 10,000 creditors combined debts of between $1 billion and $10 billion.

In addition to the Del Monte brand, the US subsidiary of Singapore-based Del Monte Pacific also owns several well-known pantry staples, such as Contadina tomatoes, College Inn broths, and Joyba bubble teas.

The company said Del Monte’s international subsidiaries are not included in the proceedings and will continue to operate as normal.