Dive Brief:
- Supervalu, New Albertsons Inc., and Albertsons LLC have now agreed as to how to wind down the transition services that Albertsons has been receiving from Supervalu.
- Per the agreement, Supervalu will receive $50 million from Albertsons, payable in eight payments of $6.25 million every six months, to compensate for the transition services. These are in addition to the fees Supervalu receives under the TSA.
- That money will go toward the "costs of providing the transition and wind down services and may help to offset the decline in TSA fees resulting from stores and distribution centers being removed from the TSA as part of the transition," Supermarket News reported.
Dive Insight:
According to the filing with the Securities and Exchange Commission, both parties also "agreed to negotiate in good faith if either the costs associated with the transition and wind down services are 'materially higher' — 5% or more — than anticipated by the Supervalu, or if Supervalu is not performing in all material respects the transition and wind down services as needed to support NAI’s and Albertson’s LLC’s transition," Supermarket News reported.