THE’Man of the mountain It is Salvo: the protagonist of the historic advertisement has not said so at all to bankruptcy.
To end up legs in the Mount Foodsa separate company that only deals with food products and only in the USA. It is not the Mount of the iconic advertising remembered by those who today have a few years on the shoulders: that is instead Fresh of the mountainwhich enjoys excellent health.
The future of the company
The historic Californian company Of the mountain Foodsa symbol of the food industry made in the USA, has started a voluntary renovation procedure under the Chapter 11 of the American bankruptcy law. A drastic but planned step, aimed at guaranteeing operational continuity and facilitating the future sale of the company.
The food brand was affected by the American consumption crisis. The move comes after years of difficulty due to the profound change in the habits of US consumers, less and less inclined to fill the handouts with canned foods and increasingly oriented towards fresh, healthy and sustainable alternatives. As Sarah Foss, the financial consultant of Debtwire, said, a company that is helping the brand to reorganize its debts, “consumer preferences have moved from canned foods rich in preservatives towards healthier alternatives”.
The CEO Greg Longstreet in a note said:
After an in -depth assessment of all available options, we have established that a sales process supervised by the court is the most effective way to accelerate our turnaround and create a stronger and more lasting Mount Foods.
The Californian company is now facing a debt of beyond 1.2 billion dollars And he said he had agreed on a debt renovation agreement with creditors who provides for the sale of Mount Foods of “All or basically all” of his assets. The bankruptcy request is part of a planned sales process of the company’s assets, which has obtained a loan from 912 million dollars To support your activities during the procedure, continuing to operate throughout the procedure.
Monte Foods, based in Walnut Creek, California, also has the peasant tomato brand, the broth brands in IV and Kitchen Basics and the Bubble Tea Joyba brand. The company has recorded a strong growth in the sales of the latter, but insufficient result to compensate for the drop in sales of the most iconic canned products of the brand.
How it came to bankruptcy
All the fault of the pandemic. When people were forced to home, the demand for Mount Foods products reached record levels, with the company that has committed itself to increasing production levels. But once the question started to decrease, the company found itself with a too large inventory, so much so that it is forced to store, devalue and sell with significant losses.
In 2023, Mount Foods said he reduced production due to the drop in demand; However, the reduction of volumes has led to an increase in unit costs. Also of Monte Pacific Ltd., which acquired by Mount Foods in 2014, had contracted loans to finance this acquisition, aggravating its debt. An increase in interest rates almost doubled interest – from 66 million dollars in 2020 to 125 million dollars in 2025 – exerting enormous pressure on the cash flow.
