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.
by The Packer Staff, Mar 19, 2025