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Del Monte Foods has filed for Chapter 11 bankruptcy protection as part of a broader plan to restructure its balance sheet and pursue a sale of the business.

The company said it aims to sell all or most of its assets through a court-supervised process to maximise value for stakeholders.

The US-based food producer entered into a restructuring support agreement with a group of lenders who hold a portion of its term loan debt. The agreement outlines a plan to run a “going-concern” sale, allowing the company to continue operations during the process.

Del Monte Foods has secured $912.5 million in debtor-in-possession financing from existing lenders, including $165 million in new funding. This financing is subject to court approval and is expected to support ongoing operations, including the company’s current pack season.

Greg Longstreet, president and CEO of Del Monte Foods, said: “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. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success."

The company has filed several motions with the US Bankruptcy Court in New Jersey to maintain regular business operations. Non-US subsidiaries are not part of the Chapter 11 filing and will continue operating as usual.

Del Monte Foods, which has been in business for nearly 140 years, said the bankruptcy and sale process is intended to position the company for future stability under new ownership.

Separately, Fresh Del Monte Produce, a provider of fruit and vegetables, clarified that it is not affiliated with Del Monte Foods. In a statement, Fresh Del Monte emphasised: "The two companies are entirely separate entities, with no shared ownership, governance or operations. Del Monte Foods is a privately held US company owned by a parent organization based in Singapore. Fresh Del Monte Produce’s financial or operational performance is not impacted by that separate, unaffiliated company’s announced legal or financial proceedings."