Jakarta, Indonesia Sentinel — Del Monte Indonesia has confirmed that it will continue operating as usual despite the bankruptcy filing by Del Monte Foods in the United States due to mounting debt.
In an official statement posted to its Instagram account on Wednesday (July 2), the company emphasized that it has no ownership ties to its American counterpart.
“The owner of Del Monte in Indonesia is Del Monte Asia, which has no ownership relationship with Del Monte USA,” the company said in the post. “Del Monte Indonesia continues to operate as normal.”
The clarification came after Del Monte Foods, a household name in American canned goods for nearly 140 years, filed for Chapter 11 bankruptcy protection on Tuesday (July 2 U.S. time). The company is now seeking potential buyers in a bid to restructure and save its business.
Del Monte Foods is known for brands such as College Inn broth, Contadina canned tomatoes, and its flagship Del Monte label. The company filed under Chapter 11 of the U.S. Bankruptcy Code as part of a restructuring support agreement (RSA) with its creditors.
“After thoroughly evaluating all available options, we determined that a court-supervised sale process is the most effective way to accelerate our recovery and build a stronger, more sustainable Del Monte Foods,” said President and CEO Greg Longstreet, as quoted by CNN Business.
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Court filings revealed that Del Monte Foods is carrying an estimated debt ranging from $1 billion to $10 billion. Despite the staggering liabilities, the company has secured $912.5 million in new financing to maintain operations during the sale process—crucial support as the company approaches its peak canning season.
Del Monte said it will seek the highest or best offer for its assets to preserve business continuity and maximize company value. President and CEO Greg Longstreet acknowledged that the company has faced significant challenges, largely driven by volatile global economic conditions.
Shifting consumer behavior has also played a major role, he added, with shoppers cutting back on spending and increasingly favoring lower-cost private label brands over name-brand goods.
(Raidi/Agung)
