Big News On Kroger! Company Reaches Settlement With C&S Wholesale Grocers

In March, C&S sued Kroger at the Delaware Court, asking for payment of $125 million termination fee.

Kroger said on Monday it has reached a settlement with C&S Wholesale Grocers regarding previously pending litigation between the parties in the Superior Court for the State of Delaware.

In March, C&S sued Kroger in the Delaware Court, asking for payment of $125 million termination fee. This came after Kroger and Albertsons Companies’ (ACI) nearly $25 billion merger fell apart. C&S was supposed to be the buyer of hundreds of grocery stores that the parties planned to divest.

All claims have been resolved, Kroger said, adding that the terms of the settlement are confidential. The company’s stock was marginally down on Monday morning. "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.

Retail sentiment on Kroger remained unchanged in the ‘bullish’ territory, with chatter at ‘low’ levels, according to data from Stocktwits. In December, Albertsons filed a lawsuit against Kroger in the Delaware Court of Chancery after a U.S. court blocked their merger, bringing claims for willful breach of contract and breach of the covenant of good faith and fair dealing.

Albertsons had then noted that this was a result of Kroger’s failure to exercise “best efforts” and to take “any and all actions” to secure regulatory approval of the companies’ agreed merger transaction. In March, Kroger countersued Albertsons and claimed that the firm had “secretly coordinated” with C&S. 

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