Whole Foods says it’s being bullied by the Federal Trade Commission as the agency persists in trying to undo the pricey grocer’s $565 million merger with rival Wild Oats completed last year.
The organic grocery chain – known as “whole paycheck” among shoppers who have balked at its lofty prices – has made a rare appeal to Congress and has sued to block the FTC’s continued challenge.
For its part, the US agency charges that Whole Foods unfairly dominates the “premium and natural” supermarket business. Yesterday, the FTC didn’t comment on Whole Foods’ new lawsuit.
Whole Foods is now highlighting its own recent declines in sales and profits, which have sent its shares tumbling more than 70 percent this year.
Whole Foods CEO John Mackey yesterday accused the FTC of “intimidation and bullying” as it waged “almost a vendetta” against the food retailer. The FTC’s internal judiciary, Mackey said, is a “kangaroo court” bent on rubber-stamping the agency’s allegations.
Mackey also admitted that he now thinks the Wild Oats merger was a mistake, noting that after spending more than $16 million in legal costs, the company could still face shedding many of the stores it acquired.
The FTC originally lost its case in federal court, and Whole Foods’ merger was completed in August 2007. But in July, the appeals court in Washington said the lower court underestimated the FTC’s case, opening the way for an FTC-run trial in February.