Rouses, AG-Baton Rouge dispute goes to trial

A judge in Thibodaux, La., is set to hear a case Monday between Rouses Enterprises and a former wholesaler, Associated Grocers of Baton Rouge.

Rouses has argued that it was unfairly cut off by AG-Baton Rouge in 2008 following Rouses’ acquisition of 16 Sav-A-Center stores in the New Orleans area in 2007. Rouses at the time was AG’s largest customer, accounting for 18% of its business, but said that the wholesaler refused to supply its newly acquired stores, improperly seized its stock in the group and removed its representative from its board of directors. 

Associated Grocers disputes Rouses’ characterization of the dispute, saying the retailer was paid the correct termination fee according to terms of their agreement.

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The Sav-A-Center stores, acquired from A&P, were supplied by C&S Wholesale Grocers at the time of their acquisition. Following the dispute with AG-Baton Rouge, Rouses used C&S as a primary supplier but a year ago moved to Associated Wholesale Grocers, the Kansas City, Kan.-based supplier serving Rouses from its Gulf Coast distribution center in Pearl River, La. Donny Rouse, managing parter for Rouses, told SN Monday that the retailer was happy with AWG.