Del Monte Foods wants to find a buyer as the produce giant enters Chapter 11 bankruptcy amid lagging canned goods sales.

The 139-year-old company based in Walnut Creek announced Tuesday that it sought a sale in order to restructure its operations and debt. It secured $912.5 million in financing to support operations while it goes through the process, funded by Wilmington Savings Fund Society and JP Morgan Chase Bank.

Del Monte also owns the Contadina tomato brand, College Inn, Kitchen Basics, and Joyba bubble tea. The company reported $1.7 billion in revenue in fiscal year 2024, according to Freightwaves.com.

“This is a strategic step forward for Del Monte Foods. 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 Greg Longstreet, president and CEO of the company. “With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success.”

Canned Food Not Attracting Younger Buyers

Del Monte in 2024 put its 670,000 square-foot tomato processing facility near Hanford up for sale. Morning Star Tomatoes bought it in March, but the company’s owner said he, too, would seek to sell the plant. Morning Star processes about 40% of California’s tomato production at three other plants.

Younger buyers have shifted away from canned tomato products, opting for healthier options, the Associated Press reports. Tariffs on steel also drove up the price of canning.

“While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all,” Longstreet said.