Ocado has dropped its pursuit of a £190 million payment from Marks & Spencer tied to their online grocery joint venture. The final instalment of £190.7 million was contingent on Ocado Retail meeting undisclosed performance targets in the year to November 2023, which it failed to do. Ocado had previously threatened legal action, with chief executive Tim Steiner arguing that factors such as the pandemic should have been considered. The two parties have now decided to draw a line under the dispute, resulting in no payment being made. However, M&S has reportedly refused to commit to new warehouses or increased volumes unless Ocado agrees to improved commercial terms.
Ocado Group PLCOcado abandons £190m payment claim and faces pressure to accept worse commercial terms from M&S.
Marks and Spencer Group PLCM&S avoids paying £190.7m and gains leverage to demand improved commercial terms from Ocado.