Food bankruptcies 2025: which well-known brands folded and why

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• Rizo Lopez Foods
• Stoli Group USA
• Plenty Unlimited
• Loma Linda Foods (Atlantic Natural Foods)
• Joyebells Pies
• Kombucha Town
• Del Monte

A string of 2025 bankruptcies in the food and drink sector is reshaping store shelves, investor strategies and?even for some buyers?food safety concerns. From century-old canned-food names to kitchen-table startups, these collapses matter now because they affect product availability, corporate debt trends and, in one case, public health.

Rizo Lopez Foods

The Modesto cheesemaker behind many brands sold in supermarkets?including private-label lines?stopped production after a long-running listeria outbreak was traced to its facilities. Health authorities linked infections across more than a decade and multiple states, prompting massive recalls and a halt to operations.

The consequences were immediate: distributors lost a major supplier, several packaged lines were pulled from shelves, and the company moved into insolvency after the reputational and financial damage. For consumers, the episode underscores the ongoing risks associated with soft, fresh cheeses and the importance of regulatory oversight.

Stoli Group USA

Stoli Group?s American arm filed for Chapter 11 protection in 2025 as sales slumped and investments soured. The brand has weathered geopolitical backlash tied to its origins and then poured capital into the premium whiskey boom by acquiring Kentucky Owl.

That investment required long lead times for aging and a sizable operating outlay; by the time the distillery reached full capacity, demand had cooled and market saturation?along with export disruptions?strained cash flow. Chapter 11 allows the company to reorganize rather than liquidate, so the vodka and spirits labels are likely to remain on shelves during restructuring.

Plenty Unlimited

Once hailed as part of the vertical-farming revolution, Plenty faced the harsh economics of indoor agriculture. The company entered bankruptcy protection in March and emerged in late May after a reorganization that included closing its high-profile Compton farm.

Plenty is pivoting away from low-margin salad greens grown in costly urban locations toward higher-margin crops?most notably strawberries?under an exclusive arrangement with a major berry grower. New retail and investor relationships, including financing tied to a national grocery chain, are central to its turnaround plan.

Loma Linda Foods (Atlantic Natural Foods)

Loma Linda traces its roots to the early 20th century and a long history of vegetarian products. Its parent, Atlantic Natural Foods, ran into trouble after a proposed merger collapsed and liquidity dried up.

Atlantic filed for bankruptcy in 2025 and put assets up for auction. Some brands have prospective buyers on the hook to continue production under license, especially for international markets, but the restructuring means uncertainty for supply chains and brand ownership in the near term.

Joyebells Pies

The family bakery that earned national attention after appearing on a TV investment show battled the toughest test many food entrepreneurs face: scaling. Supply disruptions and problems sourcing ripe fruit squeezed margins, and the founders ultimately sought Chapter 11 protection.

The business will shift toward frozen, ready-to-bake pies distributed regionally through major retailers, while the owners cope with the personal financial fallout. The story is a reminder that brand recognition alone doesn?t guarantee operational resilience.

Kombucha Town

Born at a farmers? market in 2011, Kombucha Town expanded into thousands of retail outlets and saw rapid revenue growth before the pandemic hit. COVID-era supply chain shocks and subsequent investment to expand production left the company financially stretched despite a later rebound.

In mid-2025 the company entered bankruptcy to restructure debt and try to preserve operations. Local supporters point to strong consumer demand for kombucha, but the case highlights how small manufacturers can become vulnerable when they scale quickly and take on significant fixed costs.

Del Monte

Arguably the most consequential filing of the year, Del Monte?a brand with more than a century on grocery shelves?declared Chapter 11 on July 1, 2025. The company cited liabilities and assets in the multibillion-dollar range, reflecting the deep financial strain it has endured.

Long-term strategic shifts away from canned goods toward fresh produce, repeated supply-chain shocks, tariff volatility and heavy leverage from private-equity buyouts have all been factors. While restructuring proceeds, operations continue; creditors and potential buyers are negotiating options that could reshape ownership without immediately removing the brand from stores.

Taken together, these cases illustrate different pressures on the food and beverage industry: regulatory and safety crises, market fashion cycles, the capital intensity of production, and the hazards of leveraged ownership. Some companies are restructuring to survive; others are being sold or shuttered.

• Product access: Expect intermittent shortages or reformulated private-label substitutions while suppliers and retailers adjust.
• Food safety: Recalls tied to contamination can lead to long-term brand damage and stricter oversight for vulnerable product categories, such as fresh cheeses.
• Investment risk: Heavily leveraged deals remain a vulnerability?especially in sectors sensitive to changing consumer habits and trade disruptions.
• Local impact: Farm and production closures affect jobs and regional supply chains even when national brands survive through sale or reorganization.

For shoppers the immediate effect will vary by product; for investors and industry watchers, these bankruptcies are a call to reassess business models that rely on thin margins, large capital outlays or volatile demand. Watch for auction results, buyer announcements and regulator communications in the coming weeks for the clearest signals of which brands will reemerge intact and which will be reconfigured under new ownership.