The basics:
- Village Super Market says Wakefern’s Morton Williams acquisition violates co-op rules barring competition with members
- Company is weighing legal options after failing to block the deal in court
- A separate trademark dispute may delay Village Super Market’s new store approvals
- Wakefern reports $20.7B in annual sales as Village Super Market sees a 6% net income decline
After Village Super Market failed to block Wakefern Food Corp.’s acquisition of upscale New York City grocery chain Morton Williams, the family-owned business is exploring legal options against its longtime wholesale supplier.
In a Dec. 4 filing with the U.S. Securities & Exchange Commission, the Springfield-based company said it believes the purchase violates Wakefern governing documents that prohibit the co-op “from acquiring and operating a retail chain that competes directly with its members.”
As part of the deal that closed in October, Keasbey-based Wakefern said it would continue operating Morton Williams’ 17 stores under the same name. All of the family-run chain’s locations are in New York – except one at Newport in Jersey City.
Financial terms were not disclosed.
Founded in 1952, Morton Williams sells fresh, high-quality produce, gourmet cheeses, premium meats and chef-prepared meals. It joined Iselin-based retailer-owned grocery cooperative Allegiance Retail Services in 2022 but would leave the coop based on the sale.
Considered one of the largest members of Wakefern by stock/share ownership, Village Super Market operates most of its three dozen stores as ShopRite supermarkets in New Jersey. However, it also runs seven stores in New York City under the Gourmet Garage and Fairway Market banners.
Expanding its Empire State presence
In acquiring Morton Williams, Wakefern executives touted the move as a way to expand its presence across the Hudson River.
Wakefern President Mike Stigers said, “When a brand is so embedded in the community, it’s essential that we preserve that legacy. Wakefern brings the scale and support to help independent operators compete and grow while retaining their local roots that made them successful. As a cooperative made up of family-owned businesses, we also know how to honor that community spirit while delivering the technology and support needed to help grocers succeed in today’s highly competitive marketplace.”
Wakefern Chairman Sean McMenamin remarked, “Wakefern is looking to the future with a long-term plan for sustainable growth for the next generations of our Membership. That means growing both within our cooperative – with our existing Wakefern members and banners – as well as making new acquisitions and expanding our wholesale distribution network.”
Established in 1946, Wakefern’s member companies independently own and operate more than 380 supermarkets across New Jersey, New York, Pennsylvania, Delaware, Massachusetts, New Hampshire and Rhode Island. Its banners include ShopRite, Price Rite Marketplace, The Fresh Grocer, Dearborn Market, Gourmet Garage, Fairway Market and Di Bruno Bros.
Mulling options
Ahead of the deal’s completion, Village Super Market filed a complaint in Middlesex County Superior Court seeking to enjoin Wakefern’s acquisition.
In its most recent SEC filing, Village Super Market said it is considering “options for alternative relief with respect to Wakefern and the acquisition.” Village Super Market also said a motion by Wakefern to dismiss the complaint is pending.
“In addition, there is currently a dispute that arose in August 2025 between the company and Wakefern related to certain trademark and other agreements between the parties, which dispute has delayed and may further delay the approval of new stores that the company has planned,” Village Super Market said. “To date, this dispute has not significantly impacted its operations or financial performance or significantly delayed the opening of any new stores. However, Wakefern has indicated that it could take additional actions against the company if the matter in controversy is not resolved.”
Village Super Market added that it is “unable to determine the probability of the outcome of these matters, or the range of reasonably possible loss, if any.”
A representative from Village Super Market did not immediately respond to a request for comment.
‘Meritless allegations’
Wakefern Chief Communications Officer Karen Meleta said in a statement, “While we cannot comment on ongoing litigation, we will vigorously defend our cooperative against the unwarranted and meritless allegations.
“What we can share is that the decision to acquire the Morton Williams chain, in October of 2025, was thoroughly vetted and overwhelmingly approved by Wakefern’s Board of Directors.
The acquisition is aligned with Wakefern’s long-term strategic plan and vision. The plan, which was shared, and has broad support across Wakefern’s Membership, is designed to ensure that the cooperative continues to be sustainable and successful long into the future for the benefit of all Members.”
Wakefern reports $20.7B in sales
The dispute comes as Wakefern continues a multiyear trend of revenue growth at its supermarkets across the Northeast. During its October shareholder meeting, the co-op reported sales of $20.7 billion for the fiscal year ending Sept. 27, a 3.1% increase from the prior year.
Meanwhile, Village Super Market recorded a 6% decline in net income to $12 million for the first fiscal quarter ending Oct. 25.
Quarterly sales were up 4.5% to $582.6 million, including same-store sales gains of 2.5%. Village Super Market also reported a sales boost from the April grand opening of a replacement store at Blue Star Shopping Center in Watchung.
Editor’s note: This story was updated at 3:35 p.m. Dec. 8, 2025, to include a statement from Wakefern.
