Kroger has reiterated its pledge not to shutter any of its locations or lay off associates if it is allowed by the federal government to merge with Albertsons.
In a statement provided to Grocery Dive on Thursday, a Kroger spokesperson said the grocer is continuing to work with antitrust officials on a plan to divest some stores in connection with the proposed merger, which the company said it was prepared to do when its deal with Albertsons was announced last fall.
“We are in the process of working with regulators to develop a thoughtful plan for store divestitures to ensure that any divested stores are sold to qualified operators with appropriate management experience, a sound business plan, strong balance sheet and the financial stability to continue to succeed and serve their communities,” the spokesperson said.
“Kroger will not close any stores, distribution centers or manufacturing facilities, or lay off any frontline associates as a result of this merger,” the spokesperson continued. “This includes any stores that may need to be divested to obtain regulatory approval.”
The spokesperson added in a separate statement that Kroger “will continue to engage constructively” about the merger with the United Food and Commercial Workers International Union, which reportedly has decided to oppose the transaction.
The UFCW has not received clear assurance from the grocers that they will not sell unviable stores or leave potential buyers of those stores with heavy amounts of debt, and plans to bring up its concerns with lawmakers and regulators, The Wall Street Journal reported Thursday.
The union did not immediately respond to a request for comment about the report.
Kroger and Albertsons have told the UFCW that they plan to sell the stores to buyers that would uphold agreements the union currently has with the supermarket chains, the newspaper also reported.
The Kroger spokesperson underscored the company’s position that the merger would be beneficial to workers and shoppers. “The merger is a win for our associates, customers and communities. The only parties who would benefit if this merger is not completed are large, non-unionized competitors such as Walmart and Amazon,” the spokesperson said.
A spokesperson for Albertsons also said the merger would be good for workers.
“We have a rich history of creating quality jobs and working collaboratively alongside UFCW,” the spokesperson said in a statement. “Our proposed merger with Kroger will secure the long-term future of union jobs by establishing a more competitive alternative to large, non-union retailers. The combined company will also invest in associate wages, training, and benefits to ensure it is able to bring even more value to the customers and communities our associates so proudly serve.”
Editor’s note: This story has been updated with a statement from an Albertsons spokesperson.