Del Monte Foods announced court approval of asset sales on February 6, 2026, signaling a significant restructuring for the 139-year-old company and leaving hundreds facing unemployment, according to reports emerging Friday. The company, known for its canned fruits and vegetables, filed for bankruptcy protection as consumer preferences shift away from its core products.
The most immediate impact of the restructuring is the closure of Del Monte’s Modesto, California, fruit cannery, resulting in the loss of 600 jobs. Peach farmers who supplied the cannery are now scrambling to secure contracts with alternative processing companies to salvage years of investment, according to a report by Univision 19 Sacramento. The situation is particularly acute as growers seek to avoid substantial financial losses.
Del Monte’s portfolio of brands, including Contadina, College Inn, and Kitchen Basics, are expected to continue under new ownership following the completion of the sale transactions, anticipated in the first quarter of 2026. The company stated the sales provide “a clear path forward” for its brands. However, the fate of the Modesto facility and its workforce remains uncertain.
The closure comes amidst broader challenges for California agriculture. Univision 19 Sacramento also reported on recent devastating frost damage to blueberry crops in Hillsborough, further impacting agricultural employment in the region. While not directly linked to Del Monte’s bankruptcy, the concurrent agricultural hardship underscores the economic vulnerability of California’s farming communities.
Del Monte Foods is based in Walnut Creek, California. The company did not immediately respond to requests for further comment regarding the long-term implications of the restructuring for its remaining operations and supply chains.