PORT TOWNSEND — More than 100 supermarkets in Washington will change ownership pending the approval of a merger between Albertsons and Kroger, two of the nation’s largest supermarket chains.
Kroger, which owns Fred Meyer and QFC, and Albertsons, owner of Safeway and Haggen stores, released a list of the 124 locations in Washington on Tuesday that are set to be sold as part of the merger. Included in the list were the QFC stores in Sequim, Port Hadlock and Port Townsend.
As part of the merger, which is still pending, the 124 locations will be sold to C&S Wholesale Grocers, LLC of Keene, N.H., which owns several supermarket chains on the East Coast, including Grand Union, Southern Family Markets and Piggly Wiggly Carolina Co.
Spokesperson Lauren La Bruno said in an email the C&S subsidiary, 1918 Winter Street Partners, would operate the stores named Tuesday.
“We are also very excited to welcome thousands of highly skilled grocery retail, store and distribution team members from Kroger and Albertsons who are currently responsible for these supermarkets,” La Bruno said.
“C&S will recognize the union workforce and maintain all collective bargaining agreements. We are committed to retaining frontline employees and further investing in growth.”
Dozens of Safeway locations throughout Washington were named for divestiture Tuesday, but the locations in Port Angeles, Sequim and Port Townsend were not included on the list.
“C&S is well prepared to successfully operate these stores for many generations to come,” La Bruno said. “We have an experienced management team with an extensive background in food retail and distribution, and the financial strength to continue investing in growth.”
La Bruno noted the transaction is not final and is subject to approval in federal court.
The Federal Trade Commission and nine states, Washington included, filed lawsuits to block the $25 billion merger earlier this year. The FTC’s case is still pending before a federal judge in Oregon with hearings on a federal injunction to block the merger to begin Aug. 26.
Washington’s lawsuit is set to go to trial in King County Superior Court in September after a judge dismissed Kroger and Albertsons’ request to dismiss the lawsuit in April.
“The proposed deal will eliminate fierce competition between Kroger and Albertsons, leading to higher prices for groceries and other essential household items for millions of Americans,” the FTC said in a statement in February. “The loss of competition will also lead to lower quality products and services, while also narrowing consumers’ choices for where to shop for groceries.”
In April, Kroger and Albertsons announced they would sell a combined 579 stores nationwide and released the proposed locations Tuesday. Washington’s 124 locations are the most of any state slated for divestiture. The state with the next highest number of stores to be sold is Arizona, with 101 locations identified.
________
Reporter Peter Segall can be reached at peter.segall@peninsuladailynews.com.
