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Food Barn Sues Safeway Over Sale of Kansas City Stores

August 8, 1989

KANSAS CITY, Mo. (AP) _ Food Barn Inc. has sued Safeway Stores Inc. for breach of contract and misrepresentation in connection with Food Barn’s purchase last year of about 65 Kansas City-area supermarkets.

Food Barn seeks $14.3 million in a lawsuit filed Friday in Jackson County Circuit Court.

The company contends it paid $143 million for the stores on Feb. 8, 1988, based on false financial data supplied by Safeway.

Food Barn alleges that Safeway overstated various assets, did not mention certain liabilities and broke its contract by refusing to refund $14.3 million in extra charges for the stores.

Safeway, based in Oakland, Calif., was taken private in a 1986 leveraged buyout financed partly through the sale of some Safeway divisions. A call to the supermarket chain’s headquarters after business hours Monday was not answered.

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