Canned food staple Del Monte files for bankruptcy and starts search for buyer

The 139-year-old brand filed for Chapter 11 bankruptcy and started a sale process for its assets.

A grocery store staple has filed for bankruptcy.

Del Monte Foods, known for its canned fruits and vegetables, filed for Chapter 11 bankruptcy protections Tuesday and is now seeking a buyer.

“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,” company president and CEO Greg Longstreet said in a statement.

Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to continue operating normally during the sale process. The company listed liabilities between $1 billion and $10 billion, according to court documents.

The 139-year-old company, which is based in Walnut Creek, California, owns tomato, broth and bubble tea brands in Contadina, College Inn, Kitchen Basics and Joyba.

While Del Monte has seen sales growth of College Inn, Kitchen Basics and Joyba, it was not enough to offset weaker sales of the company's signature products as customers turn to other options.

“Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,” Sarah Foss, global head of legal and restructuring at financial consultancy Debtwire, told The Associated Press.

The Associated Press contributed to this report.