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Diving Briefs:
- Lived I am applying for bankruptcy and looking for a buyer For the 139 -year -old business.
- Greg Longstreet, CEO of the statement, said, “The tasks and vegetable manufacturers faced the tasks strengthened by the dynamic macroeconomic environment.
- The sales of a company headquartered in California said, “This is the most effective way to accelerate our shifts and create more powerful and sustainable Del Montte food,” Longstreet added.
Dive Insights:
There are few brands that can be recognized in grocery store shelf as Dell Montte food. But notorious was not enough to save vulnerable companies from external forces weighed in business.
Shoppers increased their spending, increased their personal trademark products, and moved them to fresh and healthy alternatives, putting pressure on Del Monte Foods. The tariffs of steel and aluminum also measured the weight. Great for canned food business.
DEL MONTE is not only faced with a reduction in demand for products, but also means that the company pays more to store the product in the warehouse, depending on the seasonality of the business. DEL MONTE has closed factories and warehouses for the past two years. Including fruit processing factories in Washington last month.
DEL MONTE’s portfolio includes symbolic canned fruits and vegetables, Joyba Bubble Tea, Contadina Tomato, and College Inn broth.
Despite the closure, the company saw the need to take more drastic measures to improve financial photography.
Another major challenge of Del Monte Foods was debt.
According to Bloomberg, food companies deal with increasing interest payments related to DMPL’s acquisition. In addition, the news service is exploring limited liquidity with interest payments that exceed interest, depreciation, depreciation and depreciation, and the import of the company.
Longstreet said, “If the capital structure is improved, the financial position is improved, and new ownership, it can achieve long -term success.
DEL MONTE said it has secured $ 92.5 million in a new finance. This funding should provide enough liquidity to support the company’s operation in the process of selling with the cash of ongoing operations. The company estimates the debt from $ 1 billion to $ 10 billion and has 25,000 creditors. According to the court document.
Del Monte said that bankruptcy should not affect the ability to deliver the product to the store.
Canned food producers are not the only companies that have faced problems when consumers see more closely. Some large CPG companies this year Pepsiko,,, Post holding,,, Conagra brand and JM Smucker.
