Former Fresh & Easy cuts $25 million claim to $43,000 with stipulation

By Kali Hays

New York, March 28 - Old FENM Inc., formerly Fresh & Easy Neighborhood Market Inc., has requested approval of a stipulation allowing a reduced claim of $43,000 against the company from Raymond Johnson, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The claim was initially filed on Jan. 23 in the amount of $25 million with Johnson accusing the company of workplace discrimination, failure to hire, and failure to promote.

The company denies the merits of the claim and that Johnson was even employed by the company "during the time encompassed by the claim" but recognizes "the risks and expenses associated with any contested claims process or litigation, and therefore resolved disputes on the terms in the stipulation," according to the filing.

The company said that "the stipulation was negotiated in good faith and at arm's length" and its approval will provide "certainty and finality with respect to a sizable, disputed, contingent and unliquidated claim, which will pave the way to enable debtors to consummate a confirmable plan to pay settling creditors in full."

A hearing to approve the stipulation is scheduled for April 22.

Fresh & Easy, a Wilmington, Del.-based grocery store chain, filed for bankruptcy on Oct. 1. The Chapter 11 case number is 13-12569.

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