The stores, plus 27 in the suburbs, would be sold to C&S Wholesale Grocers in a merger between Kroger and Albertsons. The stores will not close, the companies say.
byAlex V. Hernandez
Updated
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CHICAGO — Eight Chicago Mariano’s and Jewel-Osco locations could be sold as parent companies Kroger and Albertsons push forward on a controversial $24.6 billion merger.
The two grocery store chains rolled out the list this week of 579 stores in 19 states they plan to sell to C&S Wholesale Grocers. If the sale is approved, C&S would buy 35 stores in Chicago and the suburbs for $2.9 billion.
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The store locations are:
- Jewel-Osco, 87 W. 87th St.
- Mariano’s, 3350 N. Western Ave.
- Mariano’s, 5353 N. Elston Ave.
- Mariano’s, 1800 W. Lawrence Ave.
- Mariano’s, 5201 N. Sheridan Road
- Mariano’s, 1500 N. Clybourn Ave. Ste 104
- Mariano’s, 3030 N. Broadway St., Ste 100
- Mariano’s, 3857 S. Dr. Martin Luther King Jr. Drive
Albertsons owns Jewel-Osco and Kroger owns Mariano’s. Officials from the grocery giants said the stores will not close and no frontline workers will lose their jobs if the sale is finalized.
“Both C&S and Kroger have each committed that no frontline workers will lose their jobs and no stores will close as a result of the merger. They will remain open,”Albertsons spokesman Brendan Geraghty said in a statement.
C&S will recognize the stores’ union workforces and maintain all collective bargaining agreements and will retain “frontline employees” once the new owner closes on the properties, spokeswoman Lauren La Bruno said in a statement to Block Club.
Founded in 1918, C&S is a wholesale grocery supplier that also operates grocery chains, including Piggly Wiggly in the Midwest and Grand Union in the New York area.
“C&S is well prepared to successfully operate these stores for many generations to come. 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 said.
The Mariano’s stores that are being sold will retain their branding, as the brand name was also included in the sale, Kroger leaders said. It is unclear what will become of the Jewel-Osco’s branding once the sale closes.
Mariano’s stores not sold off in the merger will be rebranded to another Kroger or Albertsons chain if the deal closes, according to the companies.
1918 Winter Street Partners, a subsidiary of C&S, would operate the stores, La Bruno said.
“The transaction is not final and C&S’s agreement is subject to Kroger and Albertsons resolving the pending cases in court,” La Bruno said.
The companieshad hoped to complete a nationwide merger by early this year, but the Federal Trade Commission is suing to block the deal, saying it will kill competition and raise grocery prices for millions of Americans.
Illinois Attorney General Kwame Raoul and seven of his counterparts in other states and the District of Columbia joined the lawsuit.Mayor Brandon Johnson also spoke out against the deal in March.
Local 881 United Food and Commercial Workers Union, which represents employees at Mariano’s and Jewel-Osco, has also been avocal opponent of the merger.
The deal was announcedat a time of soaring food costs, which have remained stubbornly high despite inflation beginning to calm,according to the Washington Post.
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In an April 22 letter, McMullen explained the “amended divestiture package” is aimed at addressing antitrust concerns form federal and state regulators by adding a “well-capitalized competitor [C&S Wholesale Grocers] into new geographies.”
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