Walnut Creek, California-based canned fruits and vegetables producer Del Monte has filed for bankruptcy and is seeking a buyer, the company announced on Monday.
The nearly 140-year-old company said in a news release that it is entering Chapter 11 proceedings as part of a restructuring support agreement with its lenders.
Del Monte President and CEO Greg Longstreet said in a statement that filing for bankruptcy is a “strategic step forward” for the company.
“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,” Longstreet said. “With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success.”
The California-based producer said that it has secured a commitment of more than $912 million from its lenders to help fund the company through the proceedings.
Del Monte said in the release that it intends to remain open and continue operations through its bankruptcy.
A filing in the U.S. Bankruptcy Court for the District of New Jersey said that Del Monte has between $1 billion and $10 billion in both estimated liabilities and assets. The number of creditors is estimated at between 10,000 and 25,000, according to the filing.
CBS News reported that Del Monte has faced a challenging last few years, issuing layoffs and making efforts to downsize by closing plants.
Other big companies have filed for Chapter 11 bankruptcy in an effort to restructure. WeightWatchers, Rite Aid, Publishers Clearing House and décor retailer At Home have all filed for Chapter 11 bankruptcy this year.