I understand that on May the 6th that Kroger is going to close on all the Shaws in New England.
Whether this will include Albertsons or not remains to be seen. Supervalu has been trying to unload a company that it has put into the dumps since it bought it 2 years ago.
Things might be on hold,seems C&S is also involved and now there might be trouble.
Thursday, January 22, 2009
Supervalu faces collusion lawsuit
The Business Journal of Milwaukee - by Caleb Stevens Minneapolis / St. Paul Business Journal
"Supervalu and C&S lawsuit"
Supervalu faces collusion lawsuit [01/22/2009]
A lawsuit filed against Supervalu Inc. alleges that the food distributor conspired with a competitor to decrease competition in the Midwest, forcing local supermarkets to pay more for products.
Mount Vernon, Iowa-based D&G Inc. filed the suit in Wisconsin federal court late last month, on behalf of itself and other local retailers. It claims that Eden Prairie, Minn.-based Supervalu (NYSE: SVU) and C&S Wholesale Grocers Inc., Keene, N.H., violated the Sherman Act by conspiring to allocate territories across the country when C&S agreed to not enter the Midwestern market if Supervalu exited New England.
The suit, filed by the law firm Kotchen & Low, calls a 2003 “asset swap” between the two wholesalers as “a conspiracy to allocate markets and refrain from competing.”
The swap consisted of Supervalu acquiring C&S’ Midwestern retailers and C&S acquiring Supervalu’s New England facilities.
After the swap both companies shut down the acquired distribution facilities and terminated approximately 1,000 employees. D&G alleges that these actions of the two suppliers were an attempt to acquire and maintain monopoly power in regional markets.
The alleged anti-competitive acts have forced local retailers to pay more for products because of the lack of competition, according to the suit.
Read more: Supervalu faces collusion lawsuit - The Business Journal of Milwaukee: