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Del Monte Foods, the US processed food manufacturer currently in Chapter 11 bankruptcy, has announced the closure of its production facility in Modesto, California, a move that will impact up to 1,800 workers.
The decision to wind down operations at the historic Central Valley site follows the company’s recent court-supervised asset auction. While the company successfully agreed the sale of its core vegetable and fruit assets to Fresh Del Monte Produce and Pacific Coast Producers, the Modesto cannery was not included in the transactions. The facility employs approximately 600 full-time staff and hires around 1,200 seasonal workers during the harvest period.
In a statement, the company said: “In connection with Del Monte Foods’ court-supervised sale process, the go-forward business will not require the operational capacity provided by the Modesto plant. As a result, Del Monte Foods has made the difficult decision to begin an orderly wind-down of operations at the facility”.
The plant, which processes peaches, apricots, and pears, has been a key hub for local growers for decades. The closure comes as the company finalises the disposal of its assets, with Fresh Del Monte acquiring the vegetable and refrigerated fruit businesses for $285 million and B&G Foods purchasing the broth portfolio for $110 million.
Source: FoodBev / Edhat / CBS News
