C&S Wholesale Grocers sues Kroger over failed Albertsons merger deal

Keene, N.H.- based C&S Wholesale Grocers has filed a lawsuit against Kroger following the retailer's failed $25 billion takeover of Albertsons, which was terminated last December, per a Wall Street Journal report.

C&S was Kroger’s divestiture partner, which agreed to acquire nearly 600 stores from the merged Kroger-Albertsons upon completion of the deal. In a lawsuit filed in Delaware state court, the company claims Kroger didn't pay the $125 million termination fee that was promised in the event the deal was cancelled, per the report.

[Related: Albertsons terminates merger with Kroger after U.S. district court blocks acquisition]

A C&S spokeswoman provided Drug Store News with the following statement: "C&S is extremely disappointed by Kroger’s blatant violation of its 2024 Agreement with C&S that required Kroger to pay a termination fee to C&S. Kroger’s failure to live up to its obligation left C&S with no choice but to file this action, and we look forward to the Court enforcing our agreement.

While we truly believe that the merger and our agreement would have greatly benefited employees, customers and communities — the outcome does not change our long-term growth priorities. C&S remains committed to our transformation strategy, which includes being an industry-leading grocery wholesaler and investing in the retail market."

A Kroger spokesperson provided Drug Store News with the following statement: "It is disappointing that C&S has decided to file a baseless lawsuit when it is clear that C&S forfeited its right to a termination fee and has no reasonable claim to any damages. Kroger will vigorously defend itself." 

[Related: Kroger files lawsuit against FTC]