Ocado warns M&S of legal action over food deal

Ocado has warned it may take legal action against M&S if the retailer does not hand over a final payment for their online food joint venture. The grocery technology firm and M&S signed a deal nearly five years ago for Ocado to sell the retailer's food on the internet. A spokesperson for M&S said: "M&S remains committed to the turnaround strategy for Ocado Retail and our focus is on working with them and Ocado Group to deliver it."On the specific issue of the contractual contingency payment, our advice is that the financial performance of Ocado Retail means the criteria for the performance payment was not met. The joint venture is owned 50:50 by Ocado and M&S. The deal was signed in early 2019 and went live the following year in September during the Covid pandemic when lockdown measures forced more people to shop online for food. In Ocado's results, it said the sum "Is significantly lower than the amount that Ocado believes it will receive in the future - either via a formal litigation process or settlement".

Read the full story

 Related companies

Make a complaint about Ocado by viewing their customer service contacts.

•