Del Monte files for bankruptcy. Modesto fruit cannery will keep running for now
AI-generated summary reviewed by our newsroom.
- Del Monte filed Chapter 11 bankruptcy but will keep Modesto plant operational.
- Company seeks buyer and will restructure debt while maintaining full production.
- California’s peach canning industry remains limited to plants in Modesto and Lodi.
Del Monte Foods has filed for bankruptcy but plans to keep operating its Modesto fruit cannery and other plants.
The announcement Tuesday, July 1, came as about 1,800 workers, two-thirds of them seasonal, prepare for peak season at the Yosemite Boulevard plant. It mainly cans peaches but also does apricots, pears and fruit cocktail.
Del Monte plans to stay in production while restructuring its debts and looking for a buyer.
“Clearly this is good news as the peach harvest is just getting underway,” said an email to board members for the California Canning Peach Association. It was shared with The Modesto Bee by Rich Hudgins, president and CEO at the Sacramento-based grower group.
Del Monte became a powerhouse in fruits and vegetables after its founding in San Francisco in 1886. It has contended in recent years with declining demand for its products, which also come in jars and plastic cups.
The company was already in the process of closing its Hanford plant for tomatoes canned under the Del Monte and Contadina labels.
It processes other fruits and vegetables in Washington state, Wisconsin and Mexico. The business also makes College Inn and Kitchen Basics broths and Joyba bubble teas.
California grows far more fresh-market peaches these days than the canning varieties, mostly between Madera and Kern counties. Canners have argued that their product is just as nutritious, and available year-round. That campaign has had limited success.
The state had dozens of peach canneries about a half-century ago. Today, the only plants are Del Monte in Modesto and Pacific Coast Producers in Lodi.
The Modesto plant’s workers belong to the International Brotherhood of Teamsters. Business agent Odus Hall said by phone that the restructuring allowed under federal bankruptcy law could help it survive.
“There is concern,” he said, “but at the same time, there is hopefulness that because it’s a Chapter 11, we can work with the company or with whoever buys it.”
Modesto plant is still hiring for three shifts
Del Monte listed 15 job openings in Modesto as of Wednesday. It needs a labeling supervisor, an electrician, production workers and others.
The plant runs three shifts roughly from July through September, timed to harvest dates for various fruit varieties. It helps sustain local container manufacturers, truckers and other providers of goods and services.
Del Monte filed in the U.S. Bankruptcy Court for the District of New Jersey. It also announced a restructuring of some of its long-term debt and $165 million in new funding from investors.
“This is a strategic step forward for Del Monte Foods,” President and CEO Greg Longstreet said in the release. “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.”
The business is headquartered in the East Bay city of Walnut Creek and also has corporate offices in Pittsburgh. The filing does not involve some of Del Monte’s fresh fruit operations around the world.
Nuts have moved ahead of peaches in Valley
Central Valley peach growers have struggled in part because the delicate fruit still must be picked by hand. Mechanical harvests have helped almonds and walnuts move ahead in total tonnage.
Stanislaus County had 3,560 acres of peach trees as of 2023, down from 13,332 in 1980, according to its agricultural commissioner’s office.
Growers sign contracts with either Del Monte or the Lodi plant that specify per-ton prices each year. Hudgins said in his email that he expects Del Monte “to continue uninterrupted business operations in completing the 2025 pack and paying all growers for their deliveries.” The association will monitor the possible bankruptcy sale.
Tomato canning remains a major industry in the Valley, although foreign competition has strained it recently. The plants include Stanislaus Food Products in Modesto, Escalon Premier Brands just to the north, ConAgra Foods in Oakdale and two companies near Los Banos.
This story was originally published July 2, 2025 at 1:51 PM.
