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Mar-08-2009Whole Foods To Sell 31 Wild Oats Stores To Settle With US(topic overview)
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After spending $28 million in legal fees and two years battling the U.S. Federal Trade Commission, Whole Foods Market Inc. agreed Friday in a settlement to sell more than 30 stores that once belonged to rival grocer Wild Oats. The settlement will stop the FTC from pursuing its legal challenge against Austin-based Whole Foods for its 2007 purchase of Wild Oats Markets Inc., another natural and organic foods chain. [1] Whole Foods Market Inc. will sell 32 Wild Oats stores and other related assets under a settlement agreement reached with the Federal Trade Commission. The FTC continued to challenge the Austin, Texas-based retailer's purchase of its largest rival, Boulder, Colo. -based Wild Oats Market Inc.[2] Whole Foods Market Inc. and the Federal Trade Commission have reached a settlement agreement resolving the government's antitrust challenge to the organic grocer's August 2007 acquisition of Wild Oats Markets Inc. Austin, Texas-based Whole Foods has agreed to sell 32 stores, mostly located in Arizona and Colorado, as part of the settlement.[3] This morning, Whole Foods Market, Inc. ( WFMI ) announced that it has reached a settlement agreement resolving the Federal Trade Commission's (FTC) antitrust challenge to the company's August 2007 acquisition of Wild Oats Markets, Inc. The FTC will issue a final ruling after a 30-day comment period.[4] WASHINGTON, March 6 (Reuters) - The Federal Trade Commission said on Friday it has reached a settlement with Whole Foods Market Inc ( WFMI.O ), resolving FTC charges that the acquisition of Wild Oats Markets in 2007 had violated antitrust law. The FTC said the settlement substantially restores competition that was eliminated by Whole Foods' acquisition of Wild Oats, its closest rival.[5] Miriam Marcus, 03.06.09, 12:35 PM EST Organic grocer reached an agreement with the government over antitrust charges related to Wild Oats. Whole Foods is going wild now that it has made peace with Uncle Sam over the legality of its 2007 acquisition of its closest rival. Whole Foods (nasdaq: WFMI - news - people ) Market reached a settlement with the Federal Trade Commission, it said Friday, resolving charges that its $565.0 million acquisition of Wild Oats Markets had violated antitrust law.[6] March 6 (Reuters) - The Federal Trade Commission and Whole Foods Market Inc announced on Friday a settlement that resolved FTC charges that the organic and natural foods grocer's 2007 purchase of Wild Oats Markets violated antitrust laws.[7] The Federal Trade Commission announced today that it has settled its dispute with Whole Foods Market, resolving the agency'''s charges that the 2007 merger between Whole Foods and Wild Oats Markets, another high-end organic grocery chain, violated federal antitrust laws.[8] For months, Whole Foods Market and its legal team have waged a very public battle against the Federal Trade Commission'''s charges that the high-end grocer'''s 2007 merger with Wild Oats Markets violated antitrust laws.[9]
Business filings jumped 54 percent, to 43,546 from 28,322 a year earlier. Whole Foods Market Inc. said Friday it will sell 13 stores to resolve the Federal Trade Commission's challenge against the grocer over its $565 million purchase of Wild Oats Markets.[10] Whole Foods Market says it will sell its Cottonwood Heights store and 12 other outlets in the western U.S. to resolve the Federal Trade Commission's challenge against the grocer over its purchase of Wild Oats Markets. The Texas-based chain said Friday it will also sell leases and assets for 19 Wild Oats stores that have already been closed, including its shuttered store at 3736 W. Center Park Drive in West Jordan.[11] Whole Foods said Friday that it had reached an agreement with the Federal Trade Commission regarding allegations that it had violated antitrust laws in its acquisition of Wild Oats and sell leases and assets of 19 Wild Oats stores that have closed.[12] Organic grocer Whole Foods Market ( WFMI.O ) on Friday settled an antitrust battle with the Federal Trade Commission by agreeing to sell the Wild Oats brand, 13 functioning stores and leases and assets for 19 closed stores.[13]
Shares of Whole Foods were down 18 cents, or 1.5%, to $11.60, in morning trading in New York. According to the settlement, which the FTC said restores competition in the premium and organic foods market, Whole Foods must sell 32 of its supermarkets and related assets, including 12 Wild Oats stores, one Whole Foods store, and the leases for 19 Wild Oats stores that have already been closed. It must also divest intellectual property relating to Wild Oats, including the branding rights.[6] Now that the case has been settled, with Whole Foods agreeing to sell off 32 former Wild Oats stores, FTC Chairman Jon Leibowitz is finally talking. He sounds. ridiculous. "As a result of this settlement," he said in a statement, "American consumers will see more choices and lower prices for organic foods. "It allows the FTC to shift resources to other important matters and Whole Foods to move on with its business." He said what he said.) It's wholly unclear on what basis Leibowitz believes there will be "more choices and lower prices." As Whole Foods' CEO John Mackey has said all along, the chain, with or without Wild Oats, faces increased competition as mainstream grocers bulk up their offerings of organic and natural products. Wal-Mart sells organic foods.[14] The terms of the settlement stipulate that Whole Foods sell 32 Wild Oats stores. Some of those stores are already closed. "As a result of this settlement, American consumers will see more choices and lower prices for organic foods," noted Jon Leibowitz, chairman, FTC, in a prepared statement.[15]
The FTC said 29 geographic markets -- including Boston, Las Vegas, Denver and Miami Beach, Fla. -- would be harmed if Whole Foods purchased Wild Oats. Under Friday's settlement, Whole Foods agreed to sell stores that are predominantly in those 29 geographic markets. However some stores, such as one in Littleton, Colo., are for sale even though the site wasn't deemed competitive, while other Wild Oats stores, such as one in Miami Beach, will remain with Whole Foods.[1] One leading antitrust attorney (Steven Newborn of Weil, Gotshal & Manges ) called the suit "laughable," and predicted Whole Foods was just delaying the inevitable divestiture of assets. Well, that happened today, as Whole Foods agreed to sell 12 Wild Oats stores and one of its own in order to satisfy the FTC, according the blog of the Legal Times, an Am Law Daily sibling publication.[16]
The combined stores had sales of about $31 million in the first quarter of fiscal year 2009, or about 1.3 percent of the company's stotal sales of $2.5 billion. Whole Foods closed on its purchase of Boulder, Colo. -based Wild Oats in August 2007 after an FTC antitrust challenge to the deal was blocked by a U.S. District Court judge.[17] Over the last two years, the dispute between Whole Foods and the FTC saw several twists and turns that made the case unlike most merger challenges in which antitrust concerns are resolved before companies decide to close a deal. Whole Foods closed its Wild Oats acquisition in August 2007 after a federal judge rejected the FTC's initial attempt to block the merger, but a federal appeals court overturned that ruling a year later and revived the commission's case, throwing the deal into a state of uncertainty.[18] Whole Foods paid $565 million in 2007 for Boulder, Colo., competitor Wild Oats after the FTC failed to block the deal in federal court. The FTC continued to press its case and a year later an appellate court concluded that the ruling allowing the deal to go forward was rushed and needed to be reconsidered.[19]
Whole Foods Market Inc. agreed Friday to disgorge many of the Wild Oats Markets Inc. stores it purchased in 2007, settling with the Federal Trade Commission a long-running case over the $565 million deal.[20] Feb. 21, 2007: Whole Foods announces a deal to buy Wild Oats for $565 million. March 13, 2007: Both stores receive a request for additional information about the merger from the Federal Trade Commission.[21]
Washington, D.C. (AHN) - The Federal Trade Commission announced Friday it has reached a settlement with Whole Foods on its challenge of the $565 million purchase of Wild Oats Markets in 2007.[22]
A Wild Oats store on 43rd and Main streets in Kansas City may be put up for sale as part of an antitrust settlement between Whole Foods Market Inc. and the Federal Trade Commission.[23] Whole Foods Markets Inc. will sell two operating and six closed stores in Arizona to settle a long-standing Federal Trade Commission dispute over its acquisition of competitor Wild Oats in 2007.[19] Law360, New York (March 06, 2009) -- After an expensive and time-consuming two-year brawl, the Federal Trade Commission and Whole Foods Market Inc. have reached an agreement regarding the grocer's acquisition of rival Wild Oats Markets Inc.[24] At least the long, surreal nightmare is over. Whole Foods Market (Nasdaq: WFMI ) has come to a settlement with the Federal Trade Commission concerning its acquisition of Wild Oats Market.[25] Whole Foods ' settlement of the Federal Trade Commission anti-trust suit over its acquisition of the Wild Oats chain will be a relief to the entire retail industry, which has been concerned about just what the FTC was up to during then entire case.[26]
Antitrust gadflies are going organic, fair-trade bananas today with news of the settlement between Whole Foods and the Federal Trade Commission, which in 2007 challenged the company's proposed merger with competitor Wild Oats.[27] German Finance Minister Peer Steinbrueck said recently that GM's plan for saving Opel "isn't a reliable basis for a decision" on whether or not the German government would come to Opel's aid. WASHINGTON, March 6 (UPI) -- The U.S. Federal Trade Commission has settled an antitrust case with Whole Foods Market Inc., concerning its 2007 purchase of Wild Oats.[28]
Three other Colorado locations in Colorado Springs, Littleton and Westminster are also on the list. The deal is part of a settlement agreement that resolves the FTC's challenge against Whole Foods Market over its 2007 purchase of Boulder-based Wild Oats Markets. It will be "business as usual" while potential buyers are sought, Whole Foods Chief Executive John Mackey said. "We believe it was in the best interests of all our stakeholders to resolve this matter so we can dedicate our full attention to selling the highest quality foods available in our inviting store environments," Mackey said.[21] The Bishop'''s Corner location will be sold as part of a federal anti-trust settlement announced on Friday. That location had been a Wild Oats Store until Whole Foods bought the other healthy food store in 2007. "It will be business as usual in the 13 operating stores to be marketed for sale. We are committed to serving our shoppers by continuing to operate these stores in the manner our customers deserve and expect,''' said Chief Executive John Mackey in a statement released Friday.[29] Under the pact, Whole Foods (WFMI), the largest U.S. organic grocer, will divest 19 former Wild Oats stores that were closed, 12 operating Wild Oats stores, one operating Whole Foods store, and Wild Oats' trademarks and other intellectual property. "It will be business as usual in the 13 operating stores to be marketed for sale," Chairman John Mackey said in a statement.[30] Whole Foods must sell the Wild Oats brand, according to the settlement. "It will be business as usual in the 13 operating stores to be marketed for sale," John Mackey, chairman, chief executive officer and co-founder of Whole Foods, said in a statement.[31] The two Boulder Wild Oats Markets, located at 2584 Baseline Road and 1651 Broadway St. as well as the Westminster store at 9229 N. Sheridan Blvd., will be put up for sale by a third party until Sept. 6. If any of the stores don't sell, or there isn't a good-faith offer by that date, those stores remain property of Whole Foods Market, said company spokeswoman Kate Lowery. "We believe it was in the best interests of all our stakeholders to resolve this matter so we can dedicate our full attention to selling the highest quality foods available in our inviting store environments," John Mackey, Whole Foods' chairman, chief executive officer and co-founder, said in a statement.[32]
Whole Foods Market, the U.S. organics retailer, will sell 13 stores as part of an agreement with the country's regulators to settle their dispute over the company's 2007 takeover of rival Wild Oats Markets.[33] Whole Foods Market Inc. will sell 13 stores to settle an antitrust challenge to its acquisition of Wild Oats Markets, but the company will keep its Memphis store.[34]
The Arizona sites are among 13 operating stores in eight states and 19 closed stores in 10 states that Whole Foods agreed to sell to allay the government's antitrust concerns over the Wild Oats acquisition.[19] Specifically, Whole Foods agreed to close 13 stores currently operating and 19 formerly operating stores in 17 geographical markets FTC said were impacted by the "anticompetitive" acquisition. The agency noted these stores represent a significant portion of the Wild Oats stores that Whole Foods acquired and is currently operating, as well as all of the formerly operating Wild Oats stores for which leases still exist.[35] For evidence that there is plenty of "choice," witness the crowds of recession-battered consumers fleeing away from Whole Foods and toward Safeway, Kroger, and others. If Wild Oats still existed, they would not be going there looking for bargains. As for Leibowitz's desire to move the FTC on to "other important matters" and for Whole Foods to "move on with its business," he's as late as his agency was when it decided, well over a year after the acquisition was complete, to continue going after Whole Foods. It's possible that selling off 32 former Wild Oats stores will actually help Whole Foods by raising needed cash for the chain. Mackey himself has said the acquisition was badly timed and that he wished he hadn't done it. It's not clear who might buy those stores'''some of which are actually closed'''and for how much.[14] Whole Foods also must divest related Wild Oats intellectual property, including unrestricted rights to the Wild Oats brand. According to FTC, these actions will allow one or more FTC-approved buyers to re-establish competition with Whole Foods in most of the areas the agency claimed would have suffered reduced competition in the wake of the acquisition, likely leading to higher prices and decreased services. "As a result of this settlement, American consumers will see more choices and lower prices for organic foods," said Jon Leibowitz, chairman of FTC. "It allows the FTC to shift resources to other important matters and Whole Foods to move on with its business." David P. Wales, acting director of the FTC's Bureau of Competition, noted for the past two years, the agency had not wavered in its belief the acquisition of Wild Oats was anticompetitive. "The consent order announced today is a major win for consumers and is the result of the superb work done by all the FTC staff," he said.[35] David Wales, acting director of the FTC's Bureau of Competition, said the settlement announced today is a 'major win' for consumers. 'Over the past two years we have never wavered in our belief that Whole Foods' acquisition of Wild Oats was anticompetitive, and we were prepared to demonstrate in court the actual, real-world consumer harm that resulted from the transaction,' he said, in a statement.[2]
WASHINGTONThe long, drawn-out battle between FTC and Whole Foods Markets Inc. over the retailer's acquisition of Wild Oats has seemingly come to an end, as both sides agreed on a settlement that will feature the divesture of 32 stores and assets related to the acquisition.[35] Whole Foods will apparently recognize a $19 million settlement.'' Among these properties are leases and related assets for 19 non-operating former Wild Oats stores, leases and related fixed assets (excluding inventory) for 12 operating Wild Oats stores and one operating Whole Foods Market store.''[36] If the settlement agreement survives a mandatory 30-day public comment period ending April 6, the divestiture committee has six months to market the assets for sale. Once the FTC issues its final approval of the deal, expected before April 30, Whole Foods expects to take a noncash charge of $19 million or less related to the sale of the 13 operating stores, which had combined sales of $31 million in the first quarter of fiscal year 2009, or roughly 1.3 percent of the company's total sales of $2.5 billion during the same period.[23] The settlement agreement has been placed on public record for a 30-day comment period, after which the FTC will issue a final ruling. In the first quarter these stores generated about $31 million in sales, or about 1.3% of the company's total sales.'''' Again, this is a win.'' It allows Whole Foods to go on without a dismantling of a deal it had already closed.[36]
The only other obligations on the Company imposed by the settlement agreement are in support of the divestiture trustee process. "We are pleased to have reached a mutually-satisfactory agreement with the FTC. We believe it was in the best interests of all our stakeholders to resolve this matter so we can dedicate our full attention to selling the highest quality foods available in our inviting store environments," said John Mackey, chairman, chief executive officer, and co-founder of Whole Foods Market. "It will be business as usual in the 13 operating stores to be marketed for sale. We are committed to serving our shoppers by continuing to operate these stores in the manner our customers deserve and expect.[37] The trustee will also oversee the sale of Wild Oats trademarks and other intellectual property associated with the retailer's stores. "We are pleased to have reached a mutually-satisfactory agreement with the FTC. We believe it was in the best interests of all our stakeholders to resolve this matter so we can dedicate our full attention to selling the highest quality foods available in our inviting store environments," said Whole Foods chairman and CEO John Mackey.[33]
The deal doesn't require the trustee in charge of selling the earmarked stores to sell to a single buyer. "The FTC didn't insist that the trustee sell to a chain," he says. "That could mean that a lot of the stores go to single-store operators, which isn't always the best way to guarantee competition." While Whole Foods has to give up its intellectual property rights in Wild Oats, there's no guarantee that the buyer of the IP rights won't be a smaller operator than Wild Oats.[27] Under the deal announced Friday, Whole Foods will sell 13 stores, some of which have closed, and the intellectual property of Wild Oats, including unrestricted rights to the Wild Oats.[24]
Under the settlement, Whole Foods has to sell 32 of the former Wild Oats stores, of which 13 are currently operating, and 19 are not. One of the terms of the settlement is that if the 13 operating stores are sold, they have to be shut down for up to 30 days so they can be stripped of all Whole Foods branding. Denis says this was vital for his client. '''It was important to get their intellectual property out. They didn'''t want to transfer that because these stores had been turned into Whole Foods stores.''' Whole Foods will incur the costs associated with divesting the 32 stores, but Denis says, '''It'''s a reasonable compromise in terms of what it'''s going to cost them.'''[9] The terms of the settlement mandate that Whole Foods sell 32 of the 74 former Wild Oats grocery stores that it acquired under the merger, as well as relinquish related intellectual property rights, including rights to the Wild Oats brand name.[8]
In a settlement announced Friday, Whole Foods agreed to sell 32 Wild Oats stores in 12 states, including 19 that already have been closed.[18] Whole Foods also said it would sell the remaining assets, including leases, of 19 nonoperating former Wild Oats stores, 10 of which were closed by Wild Oats before the merger and nine of which were closed by Whole Foods.[1] The trustee will also monitor the sale of the leases and related assets of 19 non-operating former Wild Oats stores, ten of which were closed prior to the company;s sale to Whole Foods - and nine of which were closed after the deal.[33] A 3rd-party divestiture trustee has been appointed to market the following for sale: leases and related assets for 19 non-operating former Wild Oats stores; leases and related fixed assets for 12 operating acquired Wild Oats stores and one operating Whole Foods Market store; and Wild Oats trademarks and other intellectual property associated with the Wild Oats stores.[4] Court of Appeals for the District of Columbia Circuit and on July 29, 2008 the Court of Appeals reversed the District Court and remanded the case to the District Court for further proceedings. On remand, the FTC renewed its motion for preliminary injunctive relief pending resolution of the administrative action, specifically seeking a hold separate order, the rebranding of all former Wild Oats stores, and the appointment of a trustee or special master to establish an independent management team for the former Wild Oats assets and oversee Whole Foods Market's compliance with the order.[37]
• Leases and assets, excluding inventory for 12 operating and acquired Wild Oats stores and one operating Whole Foods Market store, which includes the Kansas City location.[23] If the stores are sold, Whole Foods will be left with 42 operating Wild Oats locations, most of which have been converted to the Whole Foods brand. Whole Foods originally acquired 109 Wild Oats stores but closed nearly half of them.[18]
The stores that will be sold are in Arizona, Colorado, Conneticut, Missouri, New Mexico, Nevada, Oregon and Utah. Another 19 non-operating former Wild Oats stores also will be sold. A third party trustee will handle the sales, under the terms of the agreement. Merced, a Fox Meadows resident, said he'''s glad he can keep buying the handmade pizzas and other prepared foods at the Memphis store. '''There'''s nothing like Whole Foods,''' he said.[34] Under the terms of the deal, a third-party trustee has been appointed to oversee the sale of 12 Wild Oats stores and one Whole Foods outlet.[33]
A court-appointed trustee also will be charged with selling the leases for 19 closed Wild Oats stores, nine of which Whole Foods closed after it purchased the supermarket chain. The settlement gives Whole Foods a net gain of 78 stores on its Wild Oats purchase and subsequent settlement.[28] The FTC charged that Whole Food's purchase of 110 Wild Oats stores for $565 million impeded competition, the Los Angeles Times reported Friday.[28] Though the FTC sued Whole Foods in June 2007 in an effort to stop the purchase of Wild Oats, Whole Foods was able to go ahead in August 2007 with the $565 million deal after a U.S. district judge sided with the Austin company.[1] The settlement agreement puts to rest a fight that began in 2007, when federal regulators challenged Whole Foods' $565 million acquisition of Wild Oats, saying the deal would violate federal antitrust laws.[21] Federal regulators had challenged Whole Foods' 2007 acquisition of Wild Oats, worrying the deal would create a natural-food monopoly. Racine, Wis. -based Johnson Bank says it's turning down $100 million in government bailout funds, saying the accompanying restrictions would interfere with its values.[10]
Federal regulators had challenged Whole Foods' 2007 acquisition of Boulder, Colo. -based Wild Oats, worrying the deal would create a natural-food monopoly. Whole Foods sued the FTC in December, claiming the regulator violated its due process rights in the dispute.[38]
The initial acquisition did face anti-trust concerns -- that the new company would corner the organic foods market -- but it was allowed to clear. The FTC has persisted all these years. Finally it's resolved, and the basic gist is that Whole Foods has to divest the Wild Oats brand name and intellectual property, which they're not using anymore.[39] The FTC launched a second investigation into the merger and in January asked a federal judge to order Whole Foods to bring back the Wild Oats name and operate the stores separately. The FTC argued that the merger gave Whole Foods market dominance in certain areas, while the company countered its position has been diluted by traditional grocers who are increasingly selling natural foods.[19] Aug. 28, 2007: Whole Foods completes the merger and announces that the three Wild Oats stores in Boulder will continue operation, but the planned store anchoring Twenty Ninth Street mall will not open. Jan. 29: The FTC agrees to suspend parts of its challenge against Whole Foods while the parties discuss a settlement.[21] Hindsight yields a clear vision that the merger was not helpful to Whole Foods. The amount of debt assumed coupled with the burden of the acquiring the money-losing business of Wild Oats should have been two monster red flags to the board The FTC gave Whole Foods a way out of the purchase, and yet they persisted for roughly one year to make the acquisition. Everyone knows that there were no tangible monopoly considerations to this transaction, (except the clueless FTC).[25] WASHINGTON, D.C.Whole Foods Market has finally settled the antitrust challenge brought by FTC. The charge arose in the wake Whole Foods' 2007 acquisition of Wild Oats Markets.[15]
The company expects to record a non-cash charge of approximately $19 million or less relating to the potential sale of the 13 operating stores, which had combined sales of $31 million in the first quarter. This antitrust case against Whole Foods made little sense from the start. The FTC had concerns about Whole Foods' market power in the organic foods market, but those concerns missed the bigger industry picture.[4] As for how the settlement will affect Whole Foods' financial results, the company said it expects to record a noncash charge of up to $19 million related to the sale of the 13 operating stores.[17] According to a press release issued by Whole Foods, the company expects to take a non-cash charge of as much as $19 million relating to the potential sale of the 13 operating stores, and no additional material expenses related to the 19 closed stores.[9]
Once it gets approval from the FTC, expected sometime before April 30, Whole Foods plans to take a noncash charge of no more than $19 million for the sale of the 13 stores, which recorded sales of $31 million in the fiscal first quarter of 2009 or about 1.3 percent of the company's total sales of $2.5 billion.[21] Whole Foods plans to take a non-cash charge of up to $19 million for the sales of the stores once the settlement is officially approved by the FTC.[22] Once it gets approval from the FTC, expected before April 30, Whole Foods plans to take a noncash charge of no more than $19 million for the sale of the stores, which recorded sales of $31 million in the fiscal first quarter of 2009.[38]
Whole Foods said it expects to record a non-cash charge of approximately $19 million relating to the potential sale of the operating stores.[18] After receiving final approval by the FTC, which is expected prior to April 30, 2009, the Company expects to record a non-cash charge of approximately $19 million or less relating to the potential sale of the 13 operating stores. These stores had combined sales of approximately $31 million in the first quarter of fiscal year 2009, or approximately 1.3 percent of the Company's total sales of $2.5 billion.[37]
In addition to the 13 operating stores, which includes one Whole Foods and the rest Wild Oats, 19 previously-closed stores are also included in the settlement - and the same sale date applies.[32] "The goal is to find someone who will run the business as close to Wild Oats as we can find." Robert Summers, supermarket analyst at Pali Capital Inc., said the settlement potentially helps Whole Foods rid itself of some of its underperforming store base. "The sales productivity in these stores was pretty poor," Summers said[18]
Whole Foods said that of the 19 already-closed stores it must put up for sale, 10 stores were closed by Wild Oats before the merger and another nine were shuttered by Whole Foods after the merger was completed.[18] Whole Foods operates 278 stores, and if the sale of the 32 locations is completed, it still will retain 43 former Wild Oats stores.[1] Twelve of the 13 active grocery stores Whole Foods must put up for sale are former Wild Oats stores.[18]
Whole Foods said in the agreement that it would sell 13 operating stores: 12 Wild Oats stores and one Whole Foods store.[1] Whole Foods, which had already rebranded some of the Wild Oats stores after the US$565m acquisition, had insisted it competed head on with mainstream grocery chains that sell better-for-you products.[33] Whole Foods also agreed to sell Wild Oats trademarks and other intellectual property associated with Wild Oats stores.[40] Whole Foods has agreed to sell 13 stores consisting of 12 Wild Oats location and one Whole Foods market.[22]
Financial analyst Matt Arnold of Edward Jones said it could be tough to sell the stores. "This isn't an environment where anything is easy to sell and get a decent price for it," he said. If the stores aren't sold within the 12-month period, Whole Foods will be allowed to keep them. The legal fight between Whole Foods and the FTC has been rancorous at times, and Mackey has said that, looking back, he would have preferred not to have gotten involved with Wild Oats.[1] Whole Foods will also sell 32 former Wild Oats stores. This resolves the matter and now the company can go on.''[36] Whole Foods will sell 32 stores (13 of which are currently operating), and it will also have to divest itself of intellectual property related to Wild Oats.[25]
The 13 operating stores encompass 12 Wild Oats locations and one Whole Foods store, including five in Colorado, two in Arizona and one each in Connecticut, Missouri, New Mexico, Nevada, Oregon and Utah.[40] Most of the closed stores were Wild Oats outlets that overlapped with Whole Foods locations. Whole Foods initially bought 106 Wild Oats stores, but closed about half of them.[19] Whole Foods began shuttering and then jettisoning some Wild Oats stores itself, including the 19 listed in the settlement, leaving it with 55 up and running.[26] The settlement involves divesting 13 stores -- 12 former Wild Oats outlets and one Whole Foods store.[28]
History: The original Wild Oats, the natural foods grocery opened in the Basemar Shopping Center in 1988. After the merger, Whole Foods said it was considering the location for its "Market Express" concept. History: The store opened its doors in 1983 as the first Alfalfa's, a natural-grocery chain that merged with Wild Oats in 1996.[21] The locations include 19 shuttered Wild Oats sites, 10 of which had been closed by Wild Oats before the two chains merged in 2007, and nine of which were closed by Whole Foods following the merger.[40]
Whole Foods also agreed to relinquish the rights to the Wild Oats brand, which could be sold to a potential competitor. In exchange, the FTC will drop its legal bid to undo the merger.[18] The FTC contended that Whole Foods and Wild Oats constituted a retail class of organic food specialists what was essentially distinct from all other grocery purveyors, so that the acquisition of one by the other would essentially eliminate competition and inevitably drive up prices to consumers. It made one wonder if the FTC had ever heard of Trader Joes. Or Wal-Mart, for that matter. In an era when market differences between retailers are diminishing, the FTC seemed to be trying to create its own.[26] David P. Wales, acting director of the FTC's Bureau of Competition, said in a news release Friday that the federal agency "never wavered in our belief that Whole Foods' acquisition of Wild Oats was anticompetitive."[21] Aug. 16, 2007: Federal District Court Judge Paul Friedman rules that Whole Foods' acquisition of Wild Oats should not be blocked. Aug. 17, 2007: The FTC files an emergency motion for an injunction pending appeal, but it's denied a week later.[21]
Organic grocery chain Whole Foods closed its acquisition of smaller rival Wild Oats ages ago, but for some reason the FTC has continued to dog the company over a misguided anti-trust claim.[39]
As it pursued its ridiculous, months-late attack on Whole Foods ' acquisition of Wild Oats Market, the Federal Trade Commission remained silent.[14] AUSTIN, Texas ' Whole Foods Market here this morning said it has agreed to sell 32 stores ' most of which are closed ' to settle its antitrust case with the Federal Trade Commission.[40] South Florida Sun-Sentinel 12:12 PM EST, March 6, 2009 Whole Foods Market has agreed to sell 32 of its natural and organic supermarkets, and related assets, as part of a settlement reached Friday with the Federal Trade Commission.[41] March 6, 2009 -- BOULDER - As part of a settlement with the Federal Trade Commission, Whole Foods Market Inc. will try to sell 13 of its operational stores, including two in Boulder and one in Westminster, the company announced Friday.[32]
BOULDER, Colo. - Two Boulder stores that helped pioneer the organic-grocer industry here will be offered for sale as part of an antitrust settlement between Whole Foods and the Federal Trade Commission.[21] Whole Foods Market Inc. must put its Main Street location up for sale as part of an antitrust settlement with the Federal Trade Commission announced Friday.[31]
Please download the latest version of Adobe Flash Player, or enable JavaScript for your browser to view the video player. Carol Roszelle of Denver loads groceries into her car after shopping at the Whole Foods located at 1651 Broadway, Friday morning, Mar. 6, 2009. Whole Foods has announced that it will be putting this store up for sale as well as the Whole Foods store at 2584 Baseline Road in order to comply with the Federal Trade Commission.[21]
Whole Foods operates four stores in the Puget Sound region, and one in Vancouver, Wash. None of the 13 operating Whole Foods stores that will be up for sale under the FTC settlement is located in Washington.[17] "We are pleased to have reached a mutually-satisfactory agreement with the FTC," Whole Foods chief executive John Mackey said in a statement. "It will be business as usual in the 13 operating stores to be marketed for sale."[1] John Mackey, CEO of Whole Foods, assured the 13 operating stores to be closed will continue business as usual. "We are committed to serving our shoppers by continuing to operate these stores in the manner our customers deserve and expect," he said, noting employees in stores that are sold will have their choice of either a guaranteed job offer in another store or an enhanced severance package. "We are pleased to have reached a mutually-satisfactory agreement with the FTC. We believe it was in the best interests of all our stakeholders to resolve this matter so we can dedicate our full attention to selling the highest quality foods available in our inviting store environments."[35]
Whole Foods does not release sales data by store, but the Bishops Corner location appears to have far less customer traffic than the Whole Foods next to Blue Back Square in the center of town. "It will be business as usual for the 13 operating stores to be marketed for sale," John Mackey chairman, CEO and co-founder of Austin, Tex. -based Whole Foods said in a written statement. "We are committed to serving our shoppers by continuing to operate these stores in the manner our customers deserve and expect."[42] Whole Foods Chief Executive John Mackey said in a statement that it will be "business as usual" in the 13 operating stores, including the Utah supermarkets in Park City, Sugar House and downtown Salt Lake City.[11]
I don't know if you saw the news, but Whole Foods finally surrendered to the FTC. It agreed to sell a number of stores -- and the assets of some closed stores -- to an FTC-approved buyer. This was in lieu of actually contesting the FTC's antitrust charges before a rigged tribunal where the FTC previously announced Whole Foods would not receive due process. (And following a court of appeals decision that the FTC is entitled to unlimited deference in challenging mergers.) Although Whole Foods is spinning this as not a big deal, it's a disaster. This will embolden the FTC to get more aggressive as the economy gets worse. [43] Under the terms of the agreement, a trustee will be in charge of selling the stores and will have six months to find one or more buyers, who must be approved by the FTC. The trustee can seek additional time to sell the stores. If the stores aren't sold within 12 months, Whole Foods can retain them.[18]
As part of the agreement, Texas-based Whole Foods also agreed to sell the rights to the Wild Oats trademark and intellectual property.[41] The Austin, Texas-based company will also sell leases and assets for 19 Wild Oats stores that have already been closed.[38] A divestiture trustee now has six months to sell the former Wild Oats stores and related assets to FTC-approved buyers.[8] The FTC will appoint a trustee to oversee the sale of the Wild Oats stores and other assets, and will try to find a buyer that will try to reconstitute Wild Oats.[1]
Whole Foods acquired all of the Wild Oats stores in the nation in August 2007.[31] Whole Foods paid roughly $565 million for 110 stores under the Wild Oats name.''[36] We are a little bit sad today that the battle over the $565 million merger of Whole Foods and Wild Oats Marketplace is over.[16]
Regulators had said the merger of Whole Foods and Wild Oats, based in Boulder, Colo., would give Whole Foods a monopoly in natural and organic foods retail.[42] Company spokeswoman Kate Lowery said that despite the divestitures, the Wild Oats merger was still good for Whole Foods' long-term business plan.[18] In theory, another company could snap that up and call itself Wild Oats and try to fight against the goliath. That seems like a longshot business idea to us, and Whole Foods is probably happy to do this just to have it all over with.[39]
"Rather than waiting for litigation to play itself out for a couple of years more, it is a quick resolution," Wales said of the settlement. He said it would be difficult to unscramble the eggs more than a year after Whole Foods bought Wild Oats. "It's hard right now to put together a remedy that will 100 percent restore competition," Wales said.[1] Does Schildkraut think it was a total win for Whole Foods? Not necessarily. "I'm sure they would have preferred not to go through two years of litigation and preferred not to divest the stores and the Wild Oats name and preferred not to have the competition that the FTC will try to generate," he says.[27]
The FTC had challenged the company's purchase of Wild Oats before the deal was completed in August 2007, saying it was concerned about the loss of competition in 29 markets.[13] TIP: You can now rate this story and post comments at the bottom of the text. FTC deal » The grocer's move is part of a settlement over its purchase of Wild Oats.[11]
Under the terms of the settlement, Whole Foods will divest the Wild Oats intellectual property and name.''[36]
None of that was relevant, the FTC said. Whole Foods and Wild Oats were, by its definition, a special case, and the commission was going out of its way to get its definition enshrined in law via success in the suit.[26] Given Wild Oats blessing of the transaction, one has to assume that Wild Oats, even in a resurrected form, will bite the dust in the short term. I hope we all hold the FTC accountable in some way, shape or form for their complete and utter disregard for facts related to this case. What monopoly did Whole Foods have again when it bought a competitor? Oh, that's right, I think it was their delicious oven fresh bread.[25]
Wild Oats closed 10 before the acquisition, and Whole Foods closed the rest afterward.[23] FTC had contended the acquisition of Wild Oats violated federal antitrust laws, because the two retailers were the primary competitors in the natural and organic supermarket sector.[35] The agency had charged that the company's acquisition of Wild Oats Markets Inc. in 2007 violated federal antitrust regulations.[41]
Mackey also has criticized the FTC, accusing the agency of "bullying tactics" and called officials "arrogant." The FTC found that Mackey had spent eight years posting anonymously on Yahoo stock message boards, sometimes criticizing Wild Oats and promoting his own company.[1]
The company currently has 260 stores in the United States, Canada and England. "We believe it was in the best interests of all our stakeholders to resolve this matter so we can dedicate our full attention to selling the highest quality foods available in our inviting store environments," Whole Foods Chief Executive Officer John Mackey said. FTC Chairman Jon Leibowitz said the settlement "allows the FTC to shift resources to other important matters and Whole Foods to move on with its business."[28] The commission had argued that the merger would lessen competition in the market for natural and organic foods. "As a result of this settlement, American consumers will see more choices and lower prices for organic foods," FTC Chairman Jon Leibowitz said in a statement. "It allows the FTC to shift resources to other important matters and Whole Foods to move on with its business."[18] The commission had argued that the merger would lessen competition in the market for natural and organic foods. What, when all's said and done, do we make of the settlement? "It's pretty obviously the result of deep compromising," says Marc Schildkraut, a partner who specializes in antitrust at Howrey in D.C. (Howrey did not work on the Whole Foods/Wild Oats merger.)[27]
The merger between the two organic grocers drew the ire of the Federal Trade Commission, which sought to block the 2007 merger from the beginning, claiming it concentrated too much of the organic food market under one umbrella. Thus began a long, back-and-forth battle that reached its crescendo in December, when Whole Foods added Orrick, Herrington & Sutcliffe heavyweight Lanny Davis to its roster (headed by Dechert ) and initiated a public relations blitz that included a lawsuit against the FTC--believed to be the first such suit in more than 50 years.[16]
Kim said Food Partners, which could not be reached for comment, has already received interest from potential buyers for some stores. Bo Sharon, owner of the independent Lucky's Market on north Broadway, said his business could throw its hat in the ring for one of the stores. "Yeah we'd like to, for sure," he said Friday from the Natural Products Expo West trade show in Anaheim, Calif. "There are definitely good people at those stores, good customers," he said. "It seems like there's a need for those to be grocery stores." Steve Demos, who founded White Wave Inc. and developed the Silk soy milk brand, said the FTC's move was "unfair," adding that Safeway has its O Organics line and Kroger is becoming more competitive in natural and organic retail.[21]
Whole Foods completed the $565 million purchase after the FTC lost a court bid to block the deal over concerns that the combination would hurt consumers of premium and organic foods.[11] The outrageous witch hunt the FTC waged against Whole Foods started in mid-2007 and continued even after the FTC'''s case was shot down in court and Whole Foods had completed the acquisition. It has only become more absurd, as Whole Foods has seen steadily increasing competition from rivals like Wal-Mart (NYSE: WMT ), Safeway (NYSE: SWY ), Kroger (NYSE: KR ), and Trader Joe'''s -- all of which provide organic foods.[25]
Dechert continued to defend the company against administrative litigation brought by the FTC, while Orrick'''s Davis headed up the media and lobbying blitz. Davis also repped Whole Foods in a separate lawsuit filed by the grocer against the FTC alleging bias and due process violations. (That case was withdrawn from the U.S. District Court for the District of Columbia for procedural reasons in January, and is no longer being pursued.) While Davis has been the public face of Whole Foods''' fight, when it came time to sit down at the negotiating table, Denis says he took the lead. He says he and Whole Foods executive vice president, Jim Sud, hammered out the agreement with the FTC lawyers.[9] The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. These risks include but are not limited to general business conditions, the successful integration of acquired businesses into our operations, changes in overall economic conditions that impact consumer spending, including fuel prices and housing market trends, the impact of competition, changes in the Company's access to available capital, the successful resolution of FTC matters, and other risks detailed from time to time in the SEC reports of Whole Foods Market, including Whole Foods Market's report on Form 10-K for the fiscal year ended September 28, 2008.[37] The FTC'''s antitrust challenge helped insert increased risk into Whole Foods Market stock, so resolution is good news for us long-patient shareholders. At least Whole Foods can finally move on and address the harsh economic headwinds and, yes, the price-cutting competition.[25]
The FTC said that requiring Whole Foods to sell the stores would restore competition in 17 geographic markets.[18] Friday: Whole Foods agrees to sell 13 stores, including two in Boulder, to resolve the FTC's challenge against the merger.[21] Under the settlement, a divestiture trustee will sell the following 13 stores operated by Whole Foods.[7] Under the settlement, Whole Foods will sell 32 premium natural and organic supermarkets and related assets, the FTC said.[5] Whole Foods will try to sell the operating stores and leases and other assets at the closed ones.[19]
Investors are left wondering about what Wild Oats really received in acquiring Wild Oats. A third party trustee will sell the stores and the intellectual property.''[36] The Austin, Texas-based grocer said Friday that it agreed to sell 13 stores nationwide, including the original Wild Oats in Boulder's Basemar Shopping Center and the first Alfalfa's at 1651 Broadway.[21]
Whole Foods also agreed to relinquish the rights to the Wild Oats brand, which could be sold to a potential competitor.[27]
At the time of the merger announcement in February 2007, Wild Oats operated about 110 stores.[26] Wild Oats(R) trademarks and other intellectual property associated with the Wild Oats stores.[37] The value of the Wild Oats name could ultimately fall quite a bit. Lastly, Schildkraut questions whether the trustee will even find buyers for the stores, especially those that are already closed. "And they won't necessarily come cheap," he adds.[27]
Surely the FTC has had much better things to worry about than Whole Foods''' acquisition of Wild Oats (and come on, the acquisition'''s gone so '''well''' that I was recently moved to say thanks for nothing, Wild Oats ).[25] The original acquisition, which was finalized in August of 2007, included 109 Wild Oats locations. Thirty-five of those ' under the Henry's and Sun Harvest banners ' were sold immediately to Los Angles-based Smart & Final.[40]
The Main Street location has long served organic-food fans. It was a Clearly Nature's Own organic grocery for nearly 20 years before converting to the Wild Oats concept in the mid-1990s.[31] Will the former executives of Wild Oats now steup up and spemd some of that $tio buy back thei rold locations and compete with Whole Foods? The logic of the whole thing escapez me, really.[27]
Divesting the 12 operating Wild Oats identified in the settlement would leave it running 43.[26]
The FTC's leader said in a statement that selling the stores will "substantially" restore competition that the purchase eliminated. "As a result of this settlement, American consumers will see more choices and lower prices for organic foods," FTC Chairman Jon Leibowitz said in the statement.[43] Davis was not immediately available for comment. In a statement, FTC Chairman Jon Leibowitz said, '''As a result of this settlement, American consumers will see more choices and lower prices for organic foods.''' He added that the resolution of the legal battle '''allows the FTC to shift resources to other important matters and Whole Foods to move on with its business.'''[8]
Kroger ( KR ), Safeway ( SWY ), SuperValu ( SVU ) and Wal-Mart ( WMT ) combine for over $300 billion in annual sales. If these 4 traditional grocery stores allocated just a small part of their stores to organic foods, their combined sales could easily surpass Whole Foods' total sales. In any event, with the antitrust investigation finally behind it, Whole Foods can return its focus to charging premium prices to a consumer that continues to search for the lowest price and the most value.[4] Whole Foods said the 13 open stores made $31 million in sales in the first quarter of fiscal year 2009, which is about 1.3 percent of the company's total sales of $2.5 billion.[1]
The employee of two years said workers were offered three options if the store sells: take two months pay and an enhanced severance package; move to another Whole Foods store and be guaranteed a job for at least one year; or stay on with whatever new company takes over. He said most workers agreed the choices, which were extended to new hires, were far better than layoffs. "With these options, it doesn't seem like a bad thing," said Pikcilingis, who plans to accept a job at a larger Whole Foods.[21] Mike Duff has written about retail and related fields over 20 years. His work has appeared in publications as diverse as Retailing Today, Drug Store News, Supermarket Business, Consumer Digest, MarketingWeek, American Food and Ag Exporter magazines.[26]
The FTC tried to block the purchase of the stores, saying it would have combined the two largest organic and natural foods retailers and raised prices for consumers by concentrating too much power.[31] FTC alleged that the deal would unfairly minimize competition in the natural and organic foods retail sector.[15] Officials with the FTC said customers should expect the deal, which will be brokered by a third party, to foster better competition by making room for new grocers to take over the storefronts. Sharon Collinge, 46, of Boulder, said she regularly walks to the Basemar store, 2584 Baseline Road, and hopes that any owner focuses on maintaining a neighborhood grocery store and good customer service. "It's a really important resource to the community," she said. "It's just a nice, quick, accessible place to shop."[21] June 6, 2007: The FTC files a lawsuit in federal court seeking to block the deal, claiming competition would be stifled.[21] The acquisition had gone through in 2007 but last July a U.S. appeals court reversed the ruling that had cleared the deal - and gave the FTC a fresh attempt to unravel the takeover. The two sides agreed to a pause in their dispute in January to pursue a settlement, an agreement that was outlined today.[33] The settlement brings to an end a messy legal battle. In June 2007, FTC lawyers sought to block the merger, but initially lost in both the U.S. District Court for the District of Columbia and the U.S. Court of Appeals for the D.C. Circuit.[8] The court fight started in June 2007 when FTC lawyers first tried to prevent the merger by filing suit in the U.S. District Court for the District of Columbia.[9]
The suit claimed that the FTC was unfairly trying to block a merger that two federal courts approved over the agency's objections.[16]
In December, with the help of Orrick, Herrington & Sutcliffe'''s Lanny Davis, Whole Foods sued the FTC in D.C. federal court, alleging bias and due process violations.[8]
If it succeeded, the FTC might be free to declare supercenters a distinct retail class, or warehouse clubs or dollar stores. Each of those designations consists of a handful of major players with a steep drop off to smaller operators. Whatever its reasons, and everything from nostalgia to politics to a simple distaste for consolidation even in a sector that includes operations ranging from 99 Cents Only to Whole Paycheck'''or, rather, Whole Foods Markets was considered, the FTC seemed poised to arbitrarily dictate the future of food retailing.[26]
Whole Foods was already closing some stores and in October 2007 it sold 35 Henry's Farmers Market and Sun Harvest Market stores.'' It looks like the end result of the acquisition was just an exercise in killing the competition rather gaining a major brand.[36] Whole Foods will take a $19 million charge related to the settlement proceedings. It'''s a bummer (I mean, come on, Whole Foods took on a lot of debt for this acquisition), but it'''s also a relief. This uncertainty has been hanging over Whole Foods for a long while.[25] Why? In part because the fight was getting too expensive--Whole Foods had already spent about $16.5 million on legal fees and other costs by the end of 2008.Whole Foods will incur a cost of about $19 million to close the stores.[16] Lowery, the Whole Foods spokeswoman, said the company has spent approximately $28 million in legal fees on the case.[18]
The FTC's challenge had prompted an unusual and strongly worded counterattack from Whole Foods and Mackey, who said the commission had consistently mistreated the grocer and had "almost a vendetta" against the company - charges the commission strongly denied. The long legal fight perhaps took a toll on both sides.[18] "We are pleased to have reached a mutually satisfactory agreement with the FTC," said Whole Foods CEO John Mackey.[17] Whole Foods CEO John Mackey said in a statement that it would be "business as usual" at stores while a buyer is sought. "We believe it was in the best interests of all our stakeholders to resolve this matter," he added.[19] Mackey said Whole Foods plans to offer employees in stores that are sold guaranteed job offers in other stress or an enhanced severance package.[2] "The Main Street location is an icon and has a good following." If the stores aren't sold within a year, Whole Foods can retain them.[31] The Whole Foods store being sold in the Portland area is a store that has only been open a year, and is doing next to no business; it is one I am sure WFMI wishes had never opened.[27]
Kate Lowery, a Whole Foods spokeswoman, said the company would retain control of any stores that aren't sold within six months.[21]
If no buyer is found within the next six months, the company will retain possession of the outlet, said Whole Foods spokesman Libba Letton. The settlement agreement gives an additional six months if a sale is in the works, she said.[11] In keeping with FTC protocol, the settlement agreement has been placed on public record for a 30-day comment period that ends April 6.[17]
The FTC is expected to give final approval to the agreement by the end of April, Whole Foods added.[33]
The basis of the FTC suit was that there is a separate, distinct market for organic foods. That was true at one time. It is no longer true.[14] Leave that to Bernie Madoff, Chris Cox and Sir Allen Stanford. They've got it under control. This whole deal was such a waste of time. EVERYBODY sells organic stuff, newsflash FTC. They have a good business model and people seem to like there stuff.[39] Albert Kim, an FTC attorney who helped broker the deal with Whole Foods, said the details of the arrangement make it very easy and attractive for smaller grocers or other businesses looking to get into the organic-foods market.[21] The deal will leave Whole Foods with five operating natural-food stores in Arizona.[19]
The disposition of closed stores would have happened regardless, so the settlement on the surface looks like no hardship for Whole Foods.[25] The settlement also requires Whole Foods to maintain the viability and competitiveness of the stores until the divestiture is complete.[35] Bryant Pikcilingis, a 21-year-old manager at the Basemar store, said a Whole Foods executive met with employees early Friday to temper fears about the settlement.[21]
Courant Staff Report March 7, 2009 Whole Foods will have to sell its Bishops Corner supermarket in West Hartford as part of a federal antitrust settlement announced Thursday.[42] Under the settlement, an outside trustee would sell the locations and other assets.[42]
The divestiture trustee will have six months to market the assets to be divested. Whole Foods shares, which rose more than 2% to $12.03 after the announcement, have managed to buck the severe downtrend in the broader market so far this year with a 27% rally. Last month, the stock surged 37% after two analysts upgraded Whole Foods to a buy in the wake of its earnings report.[30] The stores and related assets will be sold by a divestiture trustee within a six-month time frame, although an extension from FTC is possible.[35] David Wales, the FTC's competition chief, said the commission is optimistic that the stores can be sold to a potential competitor.[18] The settlement "will restore competition in 17 geographic markets that were impacted by the acquisition," the FTC said in a press release.[42] The settlement is a win for the government, but it remains questionable whether it will have much impact on competition in the market for organic and natural foods -- the original basis of the suit.[20] The FTC says the settlement will restore competition in 17 geographic markets.[8]
Under the settlement, a trustee will be in charge of selling 19 closed stores and 13 still operating. [31] In all, the company will be divesting 32 locations as it is also planning to lease 19 locations that have either closed or do not have an operating store yet.[22] The company says that it will be business as usual at the 13 operating stores to be marketed for sale.[36] Mackey added, "it will be business as usual in the 13 operating stores to be marketed for sale."[17]
Mackey, who spoke about the settlement talks in a visit to Yale University last month, said employees of the store slated for sale would be offered jobs in another store or an "enhanced" severance package.[42] Employees working at the stores for sale will be offered a choice of a guaranteed job in another location or an "enhanced" severance package, according to Mackey.[1]
After a 12-month period, Whole Foods would retain the store if a pending sale did not go through. "Customers should expect no changes during this time period," she said.[11] A Whole Foods spokeswoman declined to speculate on how shareholders of the publicly traded company might react to potential sales.[21] The Whole Foods Market motto, "Whole Foods, Whole People, Whole Planet"(TM) captures the company's mission to find success in customer satisfaction and wellness, employee excellence and happiness, enhanced shareholder value, community support and environmental improvement. Thanks to its 53,000 Team Members, Whole Foods Market has been ranked as one of the "100 Best Companies to Work For" in America by FORTUNE magazine for 12 consecutive years.[37]
Shares of Whole Foods rose 1.1 percent to $11.91 on Friday. Shares of Genentech ( DNA.N ) rallied on Friday, rising after Roche Holding AG ( ROG.VX ) upped its bid to buy out the minority shareholders of the biotech company to $93 a share from $86.50 a share. It also extended its tender off by a week. "Based on conversations with Genentech shareholder we believe that there is a strong sentiment to bring this process to a conclusion," Roche said in a statement.[13]
Whole Foods says if there'''s not a buyer, then the company will keep the store.[29] None of eight Whole Foods stores in Miami -Dade, Broward and Palm Beach counties will be affected.[41]
In December, Whole Foods said it had spent $16 million on attorney and expert fees since 2007. Asked whether allocating additional resources to the public fight against the FTC was worth it for his client, Denis says, '''You do what you have to to defend yourself.[9] After a congressional lobbying campaign by Whole Foods, eight senators and two prominent members of the House signed letters that questioned the FTC's rules and procedures for challenging mergers.[18] The big problem many of us had with the FTC'''s stance from the start was that there are plenty of places to get organic products and that nobody was going to starve to death due to theoretical organic-food price gouging. Whole Foods has definitely had to address price, as consumers have grown more guarded about their budgets.[25] FTC Chairman Jon Leibowitz said in a written statement that as a result of the settlement, "American consumers will see more choices and lower prices for organic foods."[21] According to a Wall Street Journal article, FTC Chairman Jon Leibowitz'''s statement on the settlement said that it '''allows the FTC to shift resources to other important matters.''' Well, no kidding; I don'''t think I'''m alone in the thought that this proceeding never seemed like a very good use of taxpayer money.[25]
According to Whole Foods (Nasdaq: WFMI), the only other obligations on the company imposed by the settlement are in support of the divestiture process. [17]
In Schildkraut's mind, however, the deal featured some unusual elements. For starters, he says, the structure of the deal doesn't guarantee that a Wild Oats-type competitor to Whole Foods will emerge.[27] The deal, announced today (6 March), looks set to resolve the drawn-out battle over the future of Wild Oats.[33] The Wild Oats trademark and intellectual property also will be on the block.[1]
In February, Madoff, accused of running a Ponzi scheme that cost investors as much as $50 billion, agreed not to contest Securities and Exchange Commission charges filed against him, The New York Times reported. Court filings indicate that Madoff confessed his crime to family members and to FBI agents who arrested him in December. [28] The court later denied that motion. At the time, Whole Foods said it was considering refiling the case or reframing its request for relief.[38]
As is the case with food consumption, consumers are changing the way they shop ' and what they shop for ' in hair, skin, and bath and body categories. New York State Assemblywoman Joan Millman, D-Brooklyn, is such a big fan of Fairway Market that she helps residents in her district get free transportation there. Prepared food departments puzzling over ways to build their breakfast business might take comfort in the fact that they are not alone.[40] In addition to detailed company profiles, we bring you critical analysis on new alliances and partnerships, new products, mergers and acquisitions, labor and cost management, investments and deal flow, and a host of other important business issues.[26]
The high basket rings that accompany wine sales make it a business most food retailers want to be in.[40] The retailer said it would incur a non-cash charge of around U$19m relating to the potential sale of the stores.[33] Circuit City Stores Inc. will finish its going-out-of-business sales tomorrow, earlier than the bankrupt company projected.[3]
The FTC sought to reverse the sale through administrative procedures and in federal court.[11] Last year, an appeals court ruled that that judge had erred in blocking the challenge, which allowed the FTC to reopen the case.[17]
The peanut processor at the heart of a nationwide salmonella outbreak has nearly $11.4 million in assets and debts of $4.8 million, documents filed in U.S. Bankruptcy Court show.[3] The federal agency first sought a preliminary injunction against the acquisition, but the U.S. District Court for the District of Columbia denied the request.[34]
For any good faith offers that are not finalized by the divestiture trustee during the six-month period, an extension of up to six months may be granted. This twelve month period may be further extended to allow the FTC to approve any purchase agreements submitted within that time period. [37] In January the FTC granted the company's motion to withdraw the administrative case from adjudication to consider a proposed consent agreement.[11] On January 28, 2009, the FTC issued an order granting the Company's motion to withdraw the administrative case from adjudication for the purpose of considering a proposed consent agreement that would resolve the administrative proceeding.[37]
I find it laughable that the FTC has time to waste on litigation like this while the Fed and Treasury create giant financial institutions that are obviously in restraint of free trade and entirely too powerful. Maybe it should focus its time on breaking up C, BAC, and WFC. I mean, com'on. organics? I have a feeling organics and their insideous ilk are the reasons why we have negative equity and bernie madoff isn't in jail. There's nothing more irritating than a bunch of do-gooder hippies trying to do this capitalism thing. [39] I just needed to rant one more time. Sirius XM (Nasdaq: SIRI ) shareholders can probably sympathize with the need to rant about the FTC. That was another situation -- except that they clashed with the FCC -- in which anybody living in the real world could recognize there was plenty of competition and no monopoly in the making.[25] Lowery said the two Boulder locations were included in the negotiations because the FTC was concerned about creating better competition in specific areas of the country.[21]
Two of the stores were the Sun Harvest locations in Austin and are not affected by the settlement. [1] AnnTaylor Stores Corp. plunged 38 percent, the most since it was first sold to the public almost 18 years ago, as a shrinking job market stifled demand for business attire.[3] The company went on to say if the stores are sold, employees will either receive a guaranteed job offer in another store or an enhanced severance package.[29] Employees working in stores that are sold will be offered a job in another store or a severance package, company officials said.[11]
Employees of the operating stores will be offered guaranteed jobs at other stores or '''enhanced''' severance packages.[25]
'''You can'''t compare it to common grocery stores.''' Winterburn, a Midtown resident, said she shopped exclusively at Whole Foods when she spent a summer in San Francisco. She still buys most of her meats and vegetables at the Whole Foods in Memphis. '''They are the best source for organic foods and for unique foods that you can'''t find anywhere else and that don'''t have any of the additives or pesticides or dangerous stuff that we worry about,''' Winterburn said. '''The same thing with the meat. [34] Whole Foods, founded in 1980 in Austin, Texas, is the world's largest natural and organic foods supermarket, with more than 150 outlets in the United States, Canada and the United Kingdom.[11]
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5. FTC settles with Whole Foods on Wild Oats deal | Markets | Bonds News | Reuters
6. Whole Foods Settles With FTC - Forbes.com
7. Business finance news - currency market news - online UK currency markets - financial news - Interactive Investor
8. The BLT: The Blog of Legal Times : FTC and Whole Foods Settle Messy Antitrust Dispute
9. The BLT: The Blog of Legal Times : After Whole Foods' Long Public Battle, Why Settle Now?
10. National ticker, March 7 - DailyBulletin.com
11. Whole Foods to sell one of its Utah stores - Salt Lake Tribune
12. Grocery Stocks: Whole Foods Settles Wild Oats Case | Retail | Financial Articles & Investing News | TheStreet.com
13. STOCKS NEWS US-Whole Foods settles antitrust battle with FTC | Markets | Market Movers | Reuters
14. Pointless Case Against Whole Foods Is Settled | The Big Money
15. Whole Foods, FTC Settle
16. Orrick, Dechert Help Whole Foods Settle Antitrust Case with FTC
17. Whole Foods settles case with FTC - Puget Sound Business Journal (Seattle):
18. 3rd UPDATE: Whole Foods, FTC Settle Wild Oats Merger Dispute
19. Whole Foods settles federal antitrust case
20. Whole Foods to Sell 31 Stores in FTC Deal - WSJ.com
21. Boulder Whole Foods stores for sale : County News : ColoradoDaily.com Boulder, CO
22. Whole Foods To Sell Some Stores In FTC Settlement | AHN | March 8, 2009
23. FTC dispute may put Wild Oats site up for sale - Kansas City Business Journal:
24. Law360 : Registration
25. Whole Foods Moves On
26. Whole Foods Settles Suit, Retailing Sighs with Relief | BNET Retail Blog | BNET
27. Making Sense of the Whole Foods/FTC Antitrust Settlement - Law Blog
28. UPI NewsTrack Business
29. Upscale Grocer Goes Up For Sale - News- msnbc.com
30. UPDATE: Whole Foods To Sell 31 Wild Oats Stores To Settle With U.S.
31. Wild Oats at iconic KC location must be sold - Kansas City Star
32. Boulder County Business Report - Online!
33. US: Whole Foods to sell 13 stores in FTC deal : Food News & Comment
34. Memphis Daily News - Whole Foods to Keep Memphis Store
35. Whole Foods to Divest Stores to Settle FTC Charges
36. After FTC Settlement What of Wild Oats & Whole Foods Is Left? (WFMI) - 247 Wall Street
37. Whole Foods Market(R) and FTC Reach Settlement
38. The Associated Press: Whole Foods, FTC agree on Wild Oats settlement
39. Whole Foods Settles With The FTC
40. Whole Foods to Sell 32 Stores in FTC Settlement
41. grocery chain wins okay for merger -- South Florida Sun-Sentinel.com
42. West Hartford Whole Foods Store At Bishops Corner Must Be Sold -- Courant.com
43. LewRockwell.com Blog: Whole Foods Surrenders to the FTC
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