Kroger faces another legal battle after failed Albertsons merger

Kroger is grappling with additional legal challenges following the collapse of its proposed $24.6 billion merger with Albertsons Cos. Inc., blocked by a federal judge in December 2024 due to antitrust concerns.

The Wall Street Journal reports that C&S Wholesale Grocers is now suing Kroger for allegedly refusing to pay a $125 million termination fee after the deal fell apart.

In the deal, C&S had agreed to acquire nearly 600 stores. "Kroger failed to identify any reason for its refusal to pay the termination fee it owed C&S — because there is none," C&S said in its suit filed in Delaware state court, according to The Wall Street Journal.

After the federal court's ruling that essentially scuttled the proposed merger, Albertsons filed a lawsuit against Kroger alleging a breach of contract. Kroger has denied the allegations.

This latest legal dispute comes on the heels of a leadership change at Kroger. The company announced in early march that Rodney McMullen had resigned as CEO following an internal investigation into personal conduct.