Whole Foods reaches settlement with FTC

Austin , Texas Whole Foods Market Friday announced it has reached a settlement agreement resolving the Federal Trade Commission's antitrust challenge to the chain’s August 2007 acquisition of Wild Oats Markets.

Under the settlement, Whole Foods Market will divest 19 non-operating former Wild Oats stores, 12 operating Wild Oats stores, one operating Whole Foods store, and Wild Oats' trademarks and other intellectual property. The settlement agreement has been placed on public record for a 30-day comment period ending April 6, after which the FTC will issue a final ruling, the Austin, Texas, supermarket chain said.

“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, CEO, and co-founder of Whole Foods Market.

After receiving final approval by the FTC, which is expected prior to April 30, Whole Foods Market 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% of the company's total sales of $2.5 billion.