Walnut Creek, CA — One of Walnut Creek’s oldest and best-known employers, Del Monte Foods, has filed for Chapter 11 bankruptcy and launched a court-supervised effort to sell the company, putting hundreds of local positions — and thousands nationwide — in limbo.
What Happened
Del Monte submitted its bankruptcy petition on July 1 in U.S. Bankruptcy Court in New Jersey. The canned-fruit and vegetable giant said the move will let it “accelerate our turnaround” while operations continue.
To keep the lights on, the company secured $912.5 million in debtor-in-possession financing, with another $165 million available for this summer’s packing season.
Why Jobs Are at Risk
- Immediate cuts: A separate decision to shut down a processing plant and two warehouses in Yakima, Washington, will eliminate 51 full-time roles and roughly 448 seasonal jobs starting Aug. 8.
- Broader uncertainty: In its bankruptcy filing, Del Monte revealed it employs about 2,780 people across North America. Those headquarters, manufacturing and sales jobs now depend on the outcome of the sale process.
Although the company says the Walnut Creek headquarters will remain open during restructuring, Del Monte is a big local employer. If the company can’t recover, jobs here in the 925 could be at risk.
Our research indicates that the company employs around 150 people in Walnut Creek.
How the Company Got Here
Del Monte says a “perfect storm” sank its margins:
- Pandemic whiplash. The firm ramped up production when lockdowns spiked demand, only to be left with costly excess inventory once shoppers pivoted back to fresh foods.
- Changing tastes. Nutrition-minded consumers are choosing frozen or fresh produce over shelf-stable cans — a trend analysts say has been building for years.
- Rising costs and debt. Interest expenses have nearly doubled since 2020 according to the Washington Post
A Century-Plus Bay Area Legacy
- Founded: 1886, as part of California’s early fruit-packing boom.
- Historic cannery: Opened in San Francisco in 1907, once the world’s largest.
- Moved HQ to Walnut Creek: 2015, settling at 205 N. Wiget Lane
Today the company still partners with hundreds of farming families in California, the Pacific Northwest and Mexico, making its fate a bellwether for West Coast agriculture.
What’s Next
- Sale timeline: Interested buyers have until mid-September to submit bids; an auction could follow later in the fall, subject to court approval.
- Paychecks for now: Management says wages, benefits and vendor payments will continue during the Chapter 11 process.
- Community response: Contra Costa County officials are preparing rapid-response teams in case layoffs spill into the Bay Area; local nonprofits say they are bracing to assist displaced workers.
For Walnut Creek, the outcome will determine whether a 139-year-old pillar of the city’s business community can reinvent itself — or whether another storied Bay Area brand will disappear into history.
We’ll be following this story closely. Make sure to join our free 925 News newsletter so we can keep you in the loop.
