Skip to main content

Whole Foods ditches Henry's, Sun Harvest


AUSTIN, Texas Whole Foods Market announced today that it plans to transfer all 35 Henry's and Sun Harvest store locations, and a Riverside, Calif. distribution center to a wholly owned subsidiary of Smart & Final, a Los Angeles-based food retailer, subject to Whole Foods Market prevailing in the current lawsuit with the U.S. Federal Trade Commission concerning Whole Foods Market's merger with Wild Oats Markets and the actual closing of that merger. The Henry's and Sun Harvest stores are located in California and Texas.

"We have determined that these stores do not fit into Whole Foods Market's long-term real estate and brand strategy," said Whole Foods Market ceo John Mackey. "It is important to us to ensure a smooth transition and to be open about our plans because of the employees and loyal shoppers at these locations. We believe both will be well served by Smart and Final's business focus."

On February 21, Whole Foods Market and Wild Oats Markets entered into a merger agreement pursuant to which Whole Foods Market commenced a tender offer to purchase all the outstanding shares of Wild Oats Markets at a purchase price of $18.50 per share in cash, plus assumed debt. On June 12, the company and Wild Oats Markets announced the U.S. District Court for the District of Columbia had scheduled a preliminary injunction hearing to begin on July 31 and to conclude on Aug. 1 to decide whether to approve the U.S. Federal Trade Commission's application for an injunction to block the proposed merger between the two companies. Whole Foods Market and Wild Oats Markets consented to a temporary restraining order pending the hearing. As previously announced, the FTC provided notice of its intent to file a complaint in the U.S. District Court for the District of Columbia seeking to block the proposed acquisition of shares pursuant to the tender offer. The FTC did file such complaint with the U.S. District Court for the District of Columbia on June 7. Whole Foods Market and Wild Oats Markets are cooperating to challenge the FTC's opposition to the merger.

This ad will auto-close in 10 seconds