Del Monte Foods Shutters Modesto Cannery Following Bankruptcy Auction
Modesto, Sunday, 18 January 2026.
Del Monte Foods is permanently closing its Modesto facility, eliminating 1,800 jobs. While competitors acquired brand assets and inventory, no buyer emerged to maintain the plant’s operations.
Sudden Closure Shocks Local Labor Market
The definitive cessation of operations at the Yosemite Boulevard plant, confirmed by company officials this week, represents a severe blow to the Central Valley’s labor force [1][2]. The closure impacts approximately 600 year-round employees and an additional 1,200 seasonal workers who are typically engaged during the harvest season [1]. Workers represented by Local 948 of the International Brotherhood of Teamsters were informed of the decision on January 14, 2026, a move described by employees as a shock given prior assurances of job security [1][2]. The wages for these positions ranged from approximately $20 to $40 per hour, highlighting the loss of significant income for local families [2]. As of January 17, 2026, the City of Modesto reported it had not yet received a Worker Adjustment and Retraining Notification (WARN) Act notice, a mandatory 60-day alert required for major plant closings [5][6].
Asset Liquidation and Strategic Restructuring
This operational wind-down is the direct result of a court-supervised auction process following Del Monte Foods’ Chapter 11 bankruptcy filing on July 1, 2025 [4][5]. On January 15, 2026, the company announced the selection of three winning bidders for its assets, effectively dismantling the legacy entity [4]. Fresh Del Monte Produce Inc. is set to acquire the vegetable, tomato, and refrigerated fruit businesses for $285 million, a transaction that reunites the Del Monte brand under a single global owner for the first time in nearly four decades [4][5]. Meanwhile, B&G Foods Inc. secured the broth and stock business, and Pacific Coast Producers acquired the shelf-stable fruit business [4]. Crucially, Pacific Coast Producers’ acquisition excluded the production facilities, leaving the Modesto plant without an operator [4]. Del Monte Foods stated that the “go-forward business will not require the operational capacity” of the Modesto facility, necessitating an orderly liquidation [3][5].
Erosion of the Central Valley Canning Belt
The shuttering of the Modesto cannery underscores a long-term contraction in California’s agricultural processing sector. Following this closure, Pacific Coast Producers in Lodi remains the only fruit canner operating in the region [2]. While Pacific Coast Producers purchased $82.2 million worth of warehoused goods from Del Monte’s past harvests to sell under the label, they declined to take over the manufacturing operations [2]. This industrial decline mirrors a sharp reduction in local agricultural output; Stanislaus County’s peach acreage has plummeted by -79.928 percent between 1980 and 2024, dropping from 13,332 acres to just 2,676 acres [2]. County agricultural officials warn that the loss of this key market will generate negative ripple effects across the farming community, particularly for growers of hand-picked crops like peaches, apricots, and pears [1]. An ownership transition for the remaining assets is expected to be finalized by the end of the first quarter of 2026, pending a U.S. Bankruptcy Court hearing scheduled for January 28, 2026 [4].