(Gray News) – The food processing company Del Monte Foods has filed for bankruptcy and is looking for a buyer.

The 138-year-old company, best known for their canned fruit and vegetables, announced that it is voluntarily entering Chapter 11 and plans to sell all of its assets.

“This is a strategic step forward for Del Monte Foods,” Greg Longstreet, the company’s president and CEO, said in a press release.

Along with its signature canned products, Del Monte also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand.

According to the Associated Press, although Del Monte has seen sales growth in Joyba and their broth products, it is not enough to offset the company’s weaker sales.

Del Monte said a decline in consumer demand is to blame. Sarah Foss, the global head of legal and restructuring at Debtwire, a financial consultancy, said consumers are moving away from canned foods to healthier alternatives.

“Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,” Foss said.

The Associated Press also reported grocery inflation has caused consumers to seek out cheaper brands.

The company has secured $912.5 million in funding that will allow it to operate normally as the sale proceeds.

source : Upper Michigan Source