Del Monte Foods, the iconic grocery brand behind canned fruits, vegetables, and kitchen staples, has filed for Chapter 11 bankruptcy protection as it seeks a buyer for its assets. The move marks a major turning point for the 138-year-old company, long known for products like Contadina tomatoes and College Inn broths.

Chapter 11 Filing and Asset Sale Announced

The company made the announcement late Tuesday, confirming it is entering a court-supervised sale process to restructure its finances and chart a path forward. Del Monte has already secured $912.5 million in funding to continue normal operations during the transition, especially as it heads into peak canning season.

“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,” said CEO Greg Longstreet.

Court documents show that Del Monte’s liabilities are estimated to fall between $1 billion and $10 billion.

Why Is Del Monte Filing for Bankruptcy?

According to the company, a combination of shifting consumer behavior, macroeconomic pressures, and rising operational costs played a role in the decision.

Consumers have increasingly moved away from preservative-heavy canned goods in favor of fresh and healthier alternatives, leading to lower demand for legacy brands like Del Monte. At the same time, a growing preference for private label grocery items has cut into Del Monte’s market share.

“Del Monte says that consumer demand has declined, causing it to incur increased costs related to surplus inventory,” said Sarah Foss, global head of legal and restructuring at Debtwire. “It has had to warehouse excess stock and ramp up promotional efforts to move product off shelves.”

A Storied History Facing a Modern Crisis

Founded in 1886, Del Monte has long been a fixture in American kitchens. The company opened its historic San Francisco cannery in 1907 and, by 1909, claimed to operate the largest fruit and vegetable cannery in the world.

The brand grew to become synonymous with shelf-stable produce and was a trusted name for generations of consumers.

But as grocery habits evolve, even established brands have struggled to keep up.

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

What Happens Next for Del Monte?

Del Monte says it will continue regular operations during the sale process, supported by the new funding package. The company hopes that a successful sale and restructuring will lead to a revitalized business model better aligned with modern consumer preferences.

For now, its canned corn, green beans, and tomato sauces will remain on store shelves, but its future ownership and direction remain uncertain.

Source: CNN – 138-year-old grocery store staple files for bankruptcy

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Joann Inc., a beloved fabric and crafts retailer that has served quilters, knitters, and DIY enthusiasts for over 80 years, is officially going out of business and closing all of its stores.

Final Closure After Bankruptcy Filing

The Hudson, Ohio-based company had initially filed for Chapter 11 bankruptcy protection in January 2024, marking its second bankruptcy filing in less than a year. At the time, Joann assured customers that all stores would remain open despite sluggish consumer demand and inventory shortages.

However, earlier this month, the company announced plans to close 500 stores—more than half of its nationwide locations. Now, Joann has confirmed a full shutdown, following a recent auction where financial services company GA Group, along with Joann’s term lenders, emerged as the winning bidder to acquire the company’s assets.

What Happens Next?

• Going-out-of-business sales will begin at all Joann locations.
• Joann.com and the mobile app will remain operational for a limited time during the wind-down process.
• The company has not yet provided exact store closure dates, but updates will be shared as soon as possible.
• The final sales process is expected to take several weeks.

A Struggle to Stay Afloat

Joann had previously filed for Chapter 11 bankruptcy in March 2024 and later re-emerged as a private company. However, persistent operational challenges forced the retailer into bankruptcy once again in January.

In a statement, Joann acknowledged that leadership, board members, and legal advisors had explored every possible solution to keep the business afloat.

“We made every effort to pursue a more favorable outcome that would keep the company in business. We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders.”

Joann’s closure marks the end of an era for generations of craft lovers who have relied on the retailer for supplies and inspiration.

Source

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