Del Monte files for bankruptcy

KANKAKEE – Del Monte Foods, a 139-year-old canned and packaged food company that has a production site on the south side of Kankakee, has filed for bankruptcy.

According to published reports, the company is seeking to sell the business to a new owner to help strengthen its financial standing.

The company has maintained a production site in south Kankakee for many years. The site employs an estimated 175 workers.

Based in Walnut Creek, California, the company started its bankruptcy proceedings in the U.S. Bankruptcy Court for the District of New Jersey on Tuesday.

Company officials said they have secured a $912.5 million commitment from lenders to temporarily fund ongoing operations.

In its court filing, Del Monte listed liabilities estimated between $1 billion and $10 billion.

President and CEO Greg Longstreet said in published reports that it was determined a court-supervised sale process would be the most effective way to accelerate a turnaround to create a “stronger and enduring Del Monte Foods.”

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

The Kankakee site, known as Del Monte Fresh Produce, is at 14 Stuart Drive in the South Tec Industrial Park.

The Kankakee site earned a 2021 Daily Journal “Innovator in Manufacturing” Progress Award for a series of significant upgrades.

Del Monte has said 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.

In addition to its iconic fruit and vegetable labels, the company’s product line also includes College Inn broths and Contadina canned tomatoes.