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Kroger discloses plan to sell 63 supermarkets in California as part of its merger with Albertsons

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Kroger discloses plan to sell 63 supermarkets in California as part of its merger with Albertsons


Supermarket giant Kroger Co. announced plans to offload more than 60 supermarkets in California as part of its planned merger with Albertsons.

The 63 supermarkets — primarily in Southern California — are among hundreds of stores, distribution centers and plants on a list the companies released on Tuesday identifying which ones it plans to sell to C&S Wholesale Grocers. The sale, however, would occur only if federal regulators approve Kroger’s bid to buy its smaller rival Albertsons.

The grocery store chains proposed to sell off a package of stores and other facilities to allay regulators’ concerns about the megamerger, upping the number to 579 from 413 in April after the Federal Trade Commission blocked the deal this year.

The sale of hundreds of stores and facilities was valued at $2.9 billion in April.

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The 63 California stores listed consist of 15 Albertsons locations, including two in Huntington Beach; 31 Vons locations, including the store on Fairfax Avenue in Los Angeles, as well as the location on West 3rd Street; 16 Pavilions locations; and one Safeway in the Bay Area.

The companies have started notifying workers at affected locations, Chief Executive Rodney McMullen wrote in a memo to employees Tuesday, Bloomberg reported.

Workers will become employees of C&S Wholesale Grocers after the transaction closes, McMullen wrote. C&S has committed to transferring pay and health plans and assuming all collective bargaining agreements, he added.

In February, the FTC announced it was suing to block the merger, arguing the joining of the two businesses would obliterate competition, leading to higher prices and lower-quality products for millions of Americans.

The grocers, which announced their $25-billion merger in October 2022, are sharing the list ahead of a trial expected in August that will determine the fate of their deal.

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A coalition of United Food and Commercial Workers union locals in California has opposed the merger, organizing protests and meetings with grocery company representatives as well as state and federal and state regulators.

“We remain focused on stopping the proposed mega-merger for the same reasons we have stated since it was first announced over 20 months ago — because we know it would harm workers, it would harm shoppers, it would harm suppliers and communities, and it is illegal,” five UFCW locals said in a statement Tuesday.

Kroger and Albertsons say they need the merger to compete with larger, nonunionized rivals Amazon.com, Walmart and Costco. The companies have pledged to invest $500 million to cut prices and $1 billion to raise worker wages and benefits, in addition to $1.3 billion to improve Albertsons stores.

Kathy Finn, a longtime leader at United Food and Commercial Workers Local 770 in Southern California, said this year that the proposed merger would “impact California as much or more than any other state.”

UFCW Local 770 represents nearly 30,000 members in Los Angeles, Santa Barbara, Ventura, San Luis Obispo and Kern counties in the grocery, cannabis, retail drug, healthcare and packing industries.

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Other stores listed for sale include 124 supermarkets in Washington state, 101 in Arizona and 91 in Colorado.

Bloomberg contributed to this report.



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California Highway Patrol work to keep drivers safe during holiday weekend enforcement

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California Highway Patrol work to keep drivers safe during holiday weekend enforcement


The California Highway Patrol is urging drivers to stay focused on the road as they head out for Fourth of July celebrations.

The holiday weekend can be a dangerous time on our roads as millions of drivers are expected to travel.

CHP Officer Jorge Toro joined Eyewitness News Mornings to share how drivers can stay safe behind the wheel.

Officer Toro also highlighted the importance of sober driving over the holiday.

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He says anyone hosting a party should make sure all of their guests get home safely, ensuring anyone who may be impaired doesn’t drive.



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California returns stretch of coast to Indigenous tribes. ‘This is beyond huge’

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California returns stretch of coast to Indigenous tribes. ‘This is beyond huge’


California is returning a stretch of rugged Mendocino County coast to the Indigenous nations whose ancestors once stewarded its shores.

State transportation officials recently approved the transfer of Blues Beach and the surrounding bluffs to Kai Poma, a nonprofit founded by representatives of the Sherwood Valley Band of Pomo Indians, Round Valley Indian Tribes and Coyote Valley Band of Pomo Indians.

The transfer of 136 acres just south of the community of Westport will mark the first time land managed by the California Department of Transportation has been returned to Indigenous tribes.

“This is beyond huge,” said J. Carlos Rivera, tribal chairman of the Sherwood Valley Band of Pomo Indians. “It’s enormous from our tribal perspective that we are basically obtaining the land that our people once lived on before colonization.”

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California purchased the swath of rocky cliffs and windswept shoreline in the 1960s to expand the construction of Highway 1 and create a scenic viewpoint for highway travelers, according to a California Coastal Commission report.

More recently, public access has been largely unregulated, and summer weekends and holidays have drawn large groups who camp and party on the beach, at times driving through sensitive areas, damaging cultural sites and leaving behind trash, the report states.

Kai Poma plans to conduct cultural and archaeological resource studies and environmental surveys and then prepare a resource management plan for the property, according to planning documents. The nonprofit and the Coastal Commission have drafted a public access management plan that states the land will be open from sunrise to sunset.

Rivera described the entire property as a sacred site. The coastal waters are used by tribal people for seaweed and abalone gathering, and the shores host youth cultural camps, he said. “Protecting the land, it has a deeper meaning for us because we’re connected to the land,” he said.

The effort to acquire the land took years — and required a change in state law. Caltrans lacked the ability to transfer land to tribal governments until 2021, when Gov. Gavin Newsom signed a bill sponsored by state Sen. Mike McGuire (D-Healdsburg) that enabled the transfer, according to a news release issued at the time. The law also bars commercial activity on the property and requires public access be maintained.

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“With 136 acres now officially transferred into tribal stewardship, one of the most spectacular stretches of the Mendocino Coast will be forever protected,” McGuire said in a statement.

“This agreement, the first of its kind in California, gives these three dynamic Native American tribes the rightful opportunity to reclaim sacred lands and cultural traditions on this special piece of earth. And it’s about damn time.”

The land transfer cleared its last regulatory hurdle June 26 with the approval by the California Transportation Commission, said Neil Thapar, an attorney who works as an advisor and legal consultant to Kai Poma. Caltrans staff will next record the deed transferring the title from the state of California to Kai Poma, which is expected to happen any day, he said.



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What’s open, closed for Independence Day weekend in California?

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What’s open, closed for Independence Day weekend in California?


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With July 4 falling on a Saturday this year, many businesses and organizations are taking the day off Friday, July 3, to mark America’s 250th birthday. From banking to mail service, here’s what’s open and closed for the holiday weekend.

Most federal offices closed, mail service to continue

Non-essential federal offices will be closed on July 3. However, mail service will continue as normal, and post offices are scheduled to remain open.

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Most California government offices to remain open

Most California government offices will be open on July 3, with some exceptions.

DMV offices throughout the state will be open. However, the Employment Development Department will be closed.

DMV offices that offer Saturday hours will be closed on July 4.

Private parcel services to remain open

UPS and FedEx are both scheduled to operate normally on July 3, but will suspend service on July 4.

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Stock markets closed

Both the New York Stock Exchange and Nasdaq will be closed on July 3.

Most banks to stay open

While most banks were expected to operate normally on July 3, some may operate under modified holiday hours. All banks will be closed on July 4.

Online banking services should remain operational.

Grocery stores

Most major grocery chains will be open on both July 3 and July 4. Trader Joe’s locations will be open for regular business on July 3 but will close early at 5 p.m. on the Fourth of July.

Retailers

Many major retail stores, such as Walmart and Target, plan to operate under normal business hours on both July 3 and 4. All Costco warehouse stores operate under normal business hours on July 3, but will close on July 4.

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Restaurants

Most major restaurant chains remain open on July 4, but some will have limited hours. All Raising Cane’s locations will close on July 4.



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