As part of an attempt to successfully merge companies, Kroger-Albertsons is planning to sell off hundreds of stores across the U.S. — including 186 in Oregon and Washington — to C&S Wholesale Grocers.
PORTLAND, Ore. (KOIN) — As part of an attempt to successfully merge companies, Kroger-Albertsons is planning to sell off hundreds of stores across the U.S. — including 186 in Oregon and Washington — to C&S Wholesale Grocers.
Kroger-Albertsons had announced the plan to divest 579 of their stores to the New Hampshire-based grocery chain C&S for $2.9 billion back in April. However, the specific stores that would be sold off were not confirmed by the companies until Tuesday, as The Oregonian first reported.
The complete list of stores owned by both Albertsons and Kroger — including under Safeway and QFC branding, among others — that would be sold off includes 62 in Oregon and 124 in Washington. A Washington distribution center in Auburn is also set to close.
A Kroger spokesperson confirmed the divestiture plan with KOIN 6 News, saying in part they fully expect the stores — with the same frontline employees — to remain open under C&S after the sale happens:
"The comprehensive divestiture plan with C&S is critical to bringing the meaningful and measurable benefits of our merger with Albertsons to associates, customers and communities across America. C&S committed to ensuring zero stores will close as a result of the merger, all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading benefits alongside bargained-for wages. C&S's strong operational focus coupled with its experienced management team and financial resources will position it to successfully operate divested stores for years to come. Importantly, we are committed to working closely with C&S to ensure a seamless transition of ownership for all divested stores and supporting operational infrastructure."
In addition to the 579 stores Kroger-Albertsons plans to sell off across the U.S., they also plan to close six distribution centers and one plant.
This all comes after Kroger and Albertsons last year proposed selling 413 stores to C&S for $1.9 billion. However, the U.S. Federal Trade Commission sued to block the $24.6 billion merger in February. It's unclear if the new proposal will satisfy regulators to allow the merger to continue. A trial has been set for that lawsuit to move forward in federal court in Oregon on August 26.
Kroger and Albertsons announced their merger plans back in October 2022.
