Kroger, C&S Wholesale Grocers Reach Settlement
The Kroger Co. and C&S Wholesale Grocers have settled a lawsuit that was filed in March in Superior Court in Delaware. The legal action was related to the failed Kroger-Albertsons merger.
Terms of the deal are confidential and were not disclosed. Kroger said all claims have been resolved. News of the settlement was made public Monday, Aug. 11, in a press release titled “Kroger and C&S Wholesale Grocers Reach Friendly Settlement.”
"We are pleased to resolve the claims from C&S, and we look forward to a friendly relationship with them going forward," said Ron Sargent, chairman and CEO of Kroger. "Kroger remains focused on serving our customers and running great stores across the U.S."
Lauren La Bruno, senior vice president for communications and marketing at C&S, said the company is pleased to have reached a resolution with Kroger.
“We are looking forward to our continued transformation journey,” she said. “C&S is well positioned for the future and committed to our continued growth across the U.S., with our recent automation investments in the Northeast; our expansion on the West Coast with GreenBox; our retail investment with Southeastern Grocers in the Southeast; and our recently announced definitive agreement to purchase SpartanNash, which is expected to close in late 2025.”
The lawsuit filed by C&S alleged that Kroger refused to pay a $125 million termination fee after a federal court judge in December 2024 blocked the merger. C&S claimed that Kroger failed to identify any reason for its refusal to pay the termination fee.
A Kroger spokesperson called the C&S lawsuit baseless and said that C&S forfeited its right to the fee. However, the spokesperson did not offer specifics related to its claim that C&S forfeited the payment.
C&S was a key component of the merger proposal as it agreed to purchase 579 stores that included a mix of Kroger-owned and Albertsons-owned locations across 18 states. The food distributor also agreed to purchase several distribution centers and five private-label brands.
