Supplier, stuck with $85M hand sanitizer order, sues Kroger

December 14, 2020 | admin | Flash News

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K7 Design Group, a family-owned manufacturer and distributor of consumer products marketing under the “Ultra Defense” brand label, has filed an $85 million lawsuit against Kroger alleging that the grocer placed a huge order for hand sanitizer in the early months of the pandemic when supplies were running short nationwide and then refused to take shipment when demand softened.

The complaint against Kroger, which was filed last week in a federal court in Cincinnati,OH, alleges that the supermarket giant’s refusal to take delivery has left the supplier “with a tremendous quantity of hand sanitizer for which K7 has no other use and which it has been forced to store in its overflowing warehouses.” The suit claims that, not only did Kroger refuse delivery of legally contracted product, but that it “tried to use its immense market power to force K7 to absorb losses that” are the grocer’s responsibility.

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