Del Monte seeks bankruptcy protection

Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as U.S. consumers increasingly bypass its products for healthier or cheaper options.

Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses.

“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,” CEO Greg Longstreet said in a statement.

Del Monte Foods, based in Walnut Creek, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand.

The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte’s signature canned products.

“Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,” said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy.

Grocery inflation also caused consumers to seek out cheaper store brands. And President Donald Trump’s 50% tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans.

Tesla sales plunge again amid Musk boycott

Sales of Tesla electric cars fell sharply in the past three months as boycotts over Elon Musk’s political views continue to keep buyers away, a significant development given expectations that anger with the company’s billionaire CEO would have faded by now.

The 13% sales plunge over a year earlier suggests Musk’s embrace of President Donald Trump and far-right politicians in Europe has had a deep and enduring impact on Tesla’s brand appeal.

The new figures reported by Tesla on Wednesday also show rival electric-vehicle makers have wasted no time pouncing on the company’s weakness to steal market share, and signals Tesla’s quarterly earnings report later this month could also disappoint.

Sales fell to 384,122 in April through June, down from 443,956 in the same three months last year. During the latest period, Musk formally left the Trump administration as a cost-cutting czar, and hopes rose that sales would recover.

Musk himself recently said that Tesla was in the midst of a “major rebound” in sales.

Microsoft’s largest layoff in years hits Xbox

Microsoft is laying off thousands of workers, its second mass layoff in months and its largest in more than two years.

The tech giant began sending out layoff notices Wednesday that hit the company’s Xbox video game business and other divisions.

Among those losing their jobs are 830 workers tied to Microsoft’s headquarters in Redmond, Washington, according to a notice sent to state officials Wednesday. The company won’t say the total number of layoffs except that it was about 4% of the workforce it had a year ago.

Microsoft said the cuts will affect multiple teams around the world, including its sales division, part of “organizational changes” needed to succeed in a “dynamic marketplace.”

A memo to gaming division employees Wednesday from Xbox CEO Phil Spencer said the cuts would position the video game business “for enduring success and allow us to focus on strategic growth areas.”

Compiled from Associated Press reports.