Del Monte Foods has filed for bankruptcy, with the canned food giant facing $1.2 billion in secured debt brought on by rising interest rates, production missteps during the pandemic, and tariffs on steel and aluminum that have made imported cans more expensive.

According to The New York Times, Del Monte submitted its bankruptcy filing on July 1, while agreeing to a restructuring agreement with its lenders where it will sell off its assets to cover its debts. The company — which was founded 140 years ago and eventually grew to become one of the largest food producers in the U.S. — produces a variety of canned vegetables, fruit, broths and tomato sauces.

"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," Del Monte CEO Greg Longstreet said.

In its filing, the company described how it ramped up production to meet growing demand for food from people eating at home. But as that demand waned, Del Monte was left with excess inventory that it was forced to write off and sell at "substantial losses." The company that bought Del Monte in 2014 has carried significant debts ever since the acquisition as well, given that it had to borrow money to finance the deal. Dating back to 2020, the company's annual cash interest expenses have also doubled as interest rates have risen.