A day after legal rulings blocked the proposed $25 billion agreement, the planned merger that would combine the Safeway and QFC grocery families is off leaving behind scraps of Capitol Hill paperwork and plenty of uncertainty about the future of the neighborhood’s grocery shopping needs.
Tuesday’s legal decisions included a crippling injunction issued by a federal judge following a three-week hearing in Portland over the proposed merger combining the Albertsons and Kroger companies. Albertsons says it is now backing out of the agreement and suing Kroger over its failure to secure regulatory approval for the massive merger the companies have said was necessary to address spiraling costs and competition from Walmart and Amazon.
On Capitol Hill, the multibillion dollar deal was already in motion with early maneuverings. This summer, CHS reported as a company formed by C&S Wholesale Grocers applied to assume the liquor license for the QFC grocery store in Capitol Hillâs Harvard Market shopping center. Both Capitol Hill QFC grocery stores appeared on the roster of âPlanned Divestiture Store, Distribution Center, and Plant Locationsâ as industry giants Kroger and Albertsons promised to shed hundreds of locations as they worked toward the merger.
A $1.9 billion sale of locations would have included 579 stores across the country including 124 in Washington to be acquired by C&S, owner of the Piggly Wiggly brand that was once a staple on Capitol Hill and across the city. Continue reading