ONCE AGAIN, WHOLE FOODS CHIEF PUTS FOOT IN MOUTH
Don’t you just love corporate drama? The Federal Trade Commission’s (FTC) case against Whole Foods’ acquisition of smaller rival Wild Oats just gets stranger and stranger. Whole Foods chief John Mackey has left little to the imagination throughout the proceedings, which could hurt him in the end although it makes for an interesting story. In a bizarre twist, the FTC claims Mackey posted messages on a Yahoo financial forum under the alias “rahodeb” praising Whole Foods and talking down Wild Oats for several years.
“Bankruptcy remains a distinct possibility [for Wild Oats] IMO [in my opinion] if the business isn’t sold within the next few years,” rahodeb aka John Mackey said in a March 2006 posting on Yahoo.
Whole Foods confirms Mackey made the “rahodeb” postings between 1999 and 2006 to “avoid having his comments associated with the company and to avoid others placing too much emphasis on his remarks.”
The company went on to say, “the ’rahodeb’ postings are the personal postings of Mr. Mackey and not those of the company.”
In his personal blog, Mackey plays down the Yahoo postings and what he calls the FTC’s attempt to “embarrass both me and Whole Foods.” Here’s what he wrote:
“I had fun doing it. Many people post on bulletin boards using pseudonyms... Sometimes I simply played "devil's advocate" for the sheer fun of arguing. Anyone who knows me realizes that I frequently do this in person, too.”
Now, some analysts are saying the FTC has a valid argument after posting its case against the $565 million merger on its website this week. To view a copy, click here.
We admire Mackey’s openness and willingness to lay things on the table. This is something new for corporate America, although his openness could prove detrimental for his career. We’ll see what happens.
Both Whole Foods and Wild Oats say a merger would not be anti-competitive, claiming they face competition from regular supermarkets as well as other natural food stores. Documents provided by the FTC also show that Mackey views the acquisition as a way to avoid price wars and prevent Kroger and Safeway from opening a competing natural food chain.
“Bankruptcy remains a distinct possibility [for Wild Oats] IMO [in my opinion] if the business isn’t sold within the next few years,” rahodeb aka John Mackey said in a March 2006 posting on Yahoo.
Whole Foods confirms Mackey made the “rahodeb” postings between 1999 and 2006 to “avoid having his comments associated with the company and to avoid others placing too much emphasis on his remarks.”
The company went on to say, “the ’rahodeb’ postings are the personal postings of Mr. Mackey and not those of the company.”
In his personal blog, Mackey plays down the Yahoo postings and what he calls the FTC’s attempt to “embarrass both me and Whole Foods.” Here’s what he wrote:
“I had fun doing it. Many people post on bulletin boards using pseudonyms... Sometimes I simply played "devil's advocate" for the sheer fun of arguing. Anyone who knows me realizes that I frequently do this in person, too.”
Now, some analysts are saying the FTC has a valid argument after posting its case against the $565 million merger on its website this week. To view a copy, click here.
We admire Mackey’s openness and willingness to lay things on the table. This is something new for corporate America, although his openness could prove detrimental for his career. We’ll see what happens.
Both Whole Foods and Wild Oats say a merger would not be anti-competitive, claiming they face competition from regular supermarkets as well as other natural food stores. Documents provided by the FTC also show that Mackey views the acquisition as a way to avoid price wars and prevent Kroger and Safeway from opening a competing natural food chain.
posted at 1:01 PM
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