Kroger is facing more backlash from its failed merger with Albertsons as C&S Wholesale Grocers has sued the retailer, claiming it has failed to pay it a $125 million termination fee it owes the wholesaler related to the failed merger.

C&S had agreed to buy 579 stores, and additional non-store assets, such as infrastructure Kroger and Albertsons planned to divest, to win regulatory approval for the merger. The deal would also include access to the Signature and O Organics private brands. That agreement fell apart when judges in state and federal courts blocked the merger at the end of last year. 

“Kroger failed to identify any reason for its refusal to pay the termination fee it owed C&S — because there is none,” C&S said in its suit filed in Delaware state court, according to the Wall Street Journal.

“It is disappointing that C&S has decided to file a baseless lawsuit when it is clear that C&S forfeited its right to a termination fee and has no reasonable claim to any damages. Kroger will vigorously defend itself,” a Kroger spokesperson told Grocery Dive in an emailed statement.

Earlier this month, Kroger announced that Chairman and Chief Executive Officer Rodney McMullen had resigned from the company following a board investigation of his conduct that, while unrelated to the business, was inconsistent with Kroger's Policy on Business Ethics.

Related article: Kroger-Albertsons merger terminated