California. Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, has filed for bankruptcy protection as US consumers increasingly bypass its products in favor of healthier or cheaper alternatives.

The Walnut Creek, California-based company has secured $912.5 million in debtor-in-possession financing to allow it to continue normal operations during the sale process.

“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,” CEO Greg Longstreet said in a statement.

Del Monte Foods also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands, and the Joyba bubble tea brand. While sales of Joyba and broth products grew in fiscal 2024, they were not enough to offset weaker sales of Del Monte’s core canned goods.

“Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,” said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy.

Grocery inflation has also pushed consumers toward cheaper store brands, while the 50% tariff on imported steel imposed under former President Donald Trump in June has increased the prices Del Monte and others must pay for cans.

Del Monte Foods, owned by Singapore-based Del Monte Pacific, also faced legal challenges last year when a group of lenders filed a lawsuit objecting to the company’s debt restructuring plan. The case was settled in May with a new loan that raised Del Monte’s annual interest expenses by $4 million, according to the company.

Del Monte said late Tuesday that the bankruptcy filing is part of a planned sale of the company’s assets.