Cyberattack cripples Whole Foods distributor, leaving shelves bare
June 12 (UPI) -- A cyberattack has crippled distribution channels for one of the nation's top organic food distributors, leading to empty shelves at grocery stores nationwide.
Rhode-Island-based United Natural Foods Inc., a major supplier to Whole Foods, became aware of the attack on June 5th, a filing with the Securities and Exchange Commission said. UNFI said the breach affected its ability to fulfill customer orders.
"It's affecting operations in a very, very significant way," an employee at a Sacramento Whole Foods told NBC News. "Shelves don't even have products in some places. The shipments we receive are not what we need, or we did need it but it's too much of one product because UNFI can't communicate with stores to get proper orders."
A spokesperson for Whole Foods apologized and said the company is working to restock the shelves as quickly as it can. In a statement, UNFI acknowledged the ransomware attack.
"We have identified unauthorized activity in our systems and have proactively taken some systems offline while we investigate," UNFI said in the statement. "As soon as we discovered the activity, an investigation was initiated with the help of leading forensics experts and we have notified law enforcement. We are assessing the unauthorized activity and working to restore our systems to safely barring them back online."
UNFI said it is working closely to keep its customers updated amid the confusion and distribution disruptions.
At a quarterly earnings meeting Tuesday, UNFI CEO Sandy Douglas told investors that it is supplying customers on a "limited basis."
"We are partnering with customers across the country and across our formats in various short term modes to serve their needs as best we possibly can," he said. "Any way that we can help them with their needs, we're doing."
Douglas said the company is working with the FBI and other authorities to track the source of the breach and why UNFI's security systems failed.
The UNFI security breach comes amid a series of cyberattacks on retailers in recent weeks that have crippled the operations of several high profile retailers with ransomware.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
Washington Bridge contractors say RIDOT issued flawed RFP in countersuit against state
Traffic flows in both directions on Interstate 195 on the eastbound side of the Washington Bridge on Friday, June 13, 2025, at 3:50 p.m. Demolition work that has removed much of the westbound side of the Washington Bridge is expected to be completed in December. (Rhode Island Department of Transportation Traffic Camera) Two of the 13 firms being sued by the state for allegedly doing negligent work on the westbound Washington Bridge have filed a counterclaim, alleging the Rhode Island Department of Transportation (RIDOT) failed to tell them about a key inspection report. The counterclaim filed by Barletta Heavy Division Inc. and Aetna Bridge Company in Providence County Superior Court Thursday argues they should have been alerted to the findings of a January 1992 report by Lichtenstein & Associates, at the time they bid for the state's $78 million contract to rehabilitate the Washington Bridge in 2021. The 1992 report was cited by the state in its lawsuit against the firms, claiming they all should have known about deterioration in the concrete drop-in beams and signs of distress in the grout and cantilever beams that were eventually deemed a risk to the bridge's structural integrity. The westbound span on Interstate 195 was closed in December 2023 when engineers determined the bridge was at risk of collapsing. 'RIDOT knew or should have known, or ought to have known, that the Washington Bridge incorporated a unique design that limited the ability to determine its condition from visual inspections alone,' the counterclaim states. The westbound bridge is expected to be rebuilt by November 2028 and cost up to $427 million. Chicago-headquartered Walsh Construction Company was awarded the state's contract on June 6 after two attempts by Gov. Dan McKee's administration to secure a bridge builder. Work is scheduled to begin in July, which overlaps with the ongoing demolition of the existing bridge by Aetna, which is among the 13 firms being sued by the state. The Warwick-based contractor is expected to complete its work by the end of 2025. Barletta and Aetna claim the state concealed the true condition of the bridge and neglected to conduct the appropriate testing ahead of issuing a request for proposals in 2021. Instead, the companies allege that they received a project scope which did not identify any structural deficiencies with the post-tensioning system. The 1992 report called for RIDOT to perform additional radiographic and other evaluation of the Washington Bridge before any future attempts to rehabilitate the span over the Seekonk River. 'The Rhode Island Department of Transportation may have averted a costly and disastrous emergency closure of the Washington Bridge last December if it had followed recommendations in a detailed 1992 inspection report,' Barletta spokesperson Sallie Hofmeister said in an emailed statement. Because of the state's alleged failure to investigate the bridge, Barletta and Aetna claim they were deprived of incentives available after successful completion of the initial rehabilitation project. The two firms have asked the court to issue a judgment against the state for all of its damages plus interest. The state's initial August 2024 complaint seeks to recover damages based on alleged economic losses and physical damages, along with breaches of contracts. RIDOT spokesperson Charles St. Martin deferred comment to Rhode Island Attorney General Peter Neronha's office, which is handling the state's case. 'Counterclaims are to be expected in a case like this,' Timothy Rondeau, a spokesperson for the AG's office, said in an emailed statement.'The state stands by the allegations in its complaint. As this is part of ongoing litigation, we have no further comment.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
17 minutes ago
- Yahoo
Vera Bradley gets new CFO amid leadership shakeup
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Fashion and handbag retailer Vera Bradley appointed Coach and Proctor & Gamble alum Martin Layding as its new CFO, effective Thursday, as part of a sweep of executive leadership changes including the departure of the company's CEO, Jacqueline Ardrey, according to a Wednesday press release. Ardrey will remain with the company to ensure an orderly transition until the end of that month. The Fort Wayne-Indiana-based company, which has launched a national search for Ardrey's replacement, appointed another Coach veteran, Ian Bickley, to a newly created position of executive chairman — which is 'expected to be a temporary role during the CEO transition' — effective July 7. The leadership shakeup comes as the fashion brand looks to stem growing losses and shore up declining sales. Vera Bradley on Wednesday also reported a net loss from continuing operations of $18.3 million for its fiscal first quarter ended May 3, compared to a net loss of $7.6 million in the prior year period. Citing its executive and board changes, as well as 'significant uncertainty surrounding the consumer environment,' Vera Bradley also suspended forward guidance 'to allow the new team time to provide input on future strategic and financial expectations,' according to its earnings report. Layding is replacing Michael Schwindle, who stepped down from his position also effective Thursday, according to a company filing with the Securities and Exchange Commission. Schwindle is set to remain as an employee through June 30 to help with a smooth transition, according to the filing. Prior to joining Vera Bradley, Layding most recently served as finance chief for venture-backed edtech company Noodle, according to his LinkedIn profile. His previous experience also includes serving as CFO for print packaging supplier Rohrer Corporation and in various CFO roles for luxury retailer Coach. He began his career at Procter & Gamble. As CFO for the company, Layding, 54, will receive an annual base salary of $475,000, and will be eligible for a short-term incentive award representing 65% of his base, according to the filing. Upon his employment, he will also receive a long-term incentive grant valued at $525,000, and a cash payment of $150,000. Additionally, for the company's fiscal 2026, he will receive a long-term incentive grant valued at $500,000, the company said. Layding has 'a strong track record of driving operational transformation and rapidly scaling businesses in both the public and private domain,' incoming executive chair Bickley said Wednesday during the company's Q1 2026 earnings call, according to a transcript. 'I have previously worked with Marty and look forward to the significant contribution he can make to improving performance and accelerating the pace of change.' The two executives had overlapping tenures at Coach, with Bickley logging a 25-year career at the brand, including an 11-year stint as its president of Coach International beginning in 2006, according to his LinkedIn profile. Layding, meanwhile, joined the company in 2012 as a division vice president, before assuming roles including CFO of its international business group, CFO, North America, and global CFO before departing in 2018. Vera Bradley's reconstituted leadership team will 'focus on refining our strategy while driving operational efficiencies and cost savings to improve profitability and performance,' Bickley said Wednesday during the earnings call. The company's board 'believes we must accelerate our transformation and improve our results,' he said. Separately Robert Hall, the company's current board chair, will step down from his seat to serve as a director, Vera Bradley said; the retailer has also created a new Strategy and Transformation Committee to 'work closely with incoming leadership in shaping the company's strategic direction and future growth initiatives,' according to the Wednesday release. Vera Bradley declined to comment beyond its press release. Recommended Reading UPS CFO set to depart, citing health Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business of Fashion
30 minutes ago
- Business of Fashion
Hailey Bieber on Building Rhode into a Billion-Dollar Beauty Brand
Listen to and follow the BoF Podcast: Apple Podcasts | Spotify | Overcast Background: When Hailey Bieber launched her beauty and skincare brand Rhode in 2022, it quickly built a loyal customer base and achieved rapid commercial success. By early 2025, Rhode had generated $212 million in annual sales and, in May, was acquired by E.l.f. Beauty in a landmark $1 billion deal. 'Rhode is not just about the product; it's the whole entire world of Rhode. I want people to feel something when they get the products. When they use it, I want them to feel that they are a part of something,' Bieber shared this week at The Business of Beauty Global Forum 2025 in Napa Valley, California. 'I really do see us being a legacy brand. Rhode is going to go down as one of the greats.' In her first public appearance since the acquisition, Hailey spoke with The Business of Beauty's executive editor Priya Rao about launching her brand, how the deal with E.l.f. transpired, and her vision for the future of Rhode. The author has shared a YouTube video. You will need to accept and consent to the use of cookies and similar technologies by our third-party partners (including: YouTube, Instagram or Twitter), in order to view embedded content in this article and others you may visit in future. Key Insights: Rhode is intentionally positioned as more than a skincare brand. 'It's not just about the product, it's the whole entire world of Rhode,' Bieber said. She envisions the company evolving into a lifestyle brand with editorial flair and cultural relevance beyond just beauty. In building Rhode, Bieber looked past traditional beauty incubators and industry insiders and instead focused on building a close-knit team with a fresh perspective. 'I knew I wanted to put my own money into it. I knew I always wanted to be the majority owner,' she said. The result is a brand that feels 'super curated and tight' — an intentional strategy to maintain clarity and control. The $1 billion sale to E.l.f. Beauty was not a quick decision. Bieber was deliberate about finding a partner that respected Rhode's DNA. 'Rhode is like my baby; I'm so precious about it. The idea of ever even considering [a sale] was a very big deal to me,' she said. Bieber underscored the importance of personal connection and integrity in building a brand that resonates. 'I am Rhode and Rhode is me,' she said, explaining that the brand's tone, aesthetic and communication all reflect her own sensibilities. 'That's why I always say, Rhode is my world. It doesn't feel like a job to me.' Bieber said she is building Rhode for the long haul, something that endures, rooted in authenticity and longevity rather than trend-chasing. 'I really do see us being a legacy brand,' Bieber said. 'Rhode's going to go down as one of the greats.' Additional Resources:
