In Surprising Move, Del Monte Announces Chapter 11, Seeks Buyer

For some food processors, the last year or two have been tough, while others have flourished.

  Del Monte announces surprise Chapter 11 bankruptcy

Back in February of 2024, the company closed a processing plant in Toppenish and with it 127 jobs left.  Then later, they shut down a pear processing-fruit plant and warehouse operation near Yakima and in Wapato, with 51 jobs going away a few weeks ago.

Company officials had also announced 90 workers were let go in a Wisconsin. Until this week, Del Monte had been tight-lipped about layoffs.  The reasons given for the Yakima layoffs were said to be due to decreased demand for canned pears.

But now, the company has announced a Chapter 11 filing, seeking to find a buyer. Del Monte also owns a number of food lines, including  S & W seen on area shelves, Contadina, Joyba Teas and others.

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Officials say a variety of financial challenges  have led to the filing.  This will not affect their overseas operations.  The filing in a New Jersey court, also indicates the company has procured $912 million in new financing to continue overall operations until the buyer is found.

The company has other  plants in Mexico, CA and  still in Wisconsin. Overall, they are facing what's called secured debt of $1.2 billion dollars.

According to Just Food online:

“This was an extremely difficult decision but one the company needed to make to align the business with consumer demand."

READ More:  Company closes second plant in WA