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yesterday

UNFI Cyberattack Leaves Whole Foods Facing Empty Shelves as System Restorations Drag On

UNFI resumed limited shipments after seeking law enforcement help with outside cybersecurity experts to recover its network

Produce displayed for sale a Whole Foods Market Daily Shop ahead of opening in the Upper East Side neighborhood of New York, US, on Tuesday, Sept. 17, 2024. Whole Foods Market is opening new small-format stores aimed at serving quick-trip urban consumers, with its first set to open on Sept. 18 in New York. Photographer: Yuki Iwamura/Bloomberg
a photo of the frozen and refrigerated section at a local Whole Foods, with empty spaces, and signs warning of an out-of-stock issue.
A Whole Foods grocery store in New York City.
An employee stocks the shelves with fresh peppers in the produce section at Whole Foods in Dublin, Ohio on Friday, November 7, 2014.

Overview

  • UNFI first detected unauthorized network activity on June 5 and proactively took parts of its IT systems offline to contain the breach.
  • The shutdown has temporarily curtailed the distributor’s ability to fulfill customer orders, leading to reports of empty shelves and delivery delays at Whole Foods locations in multiple states.
  • During its June 10 earnings call, CEO Sandy Douglas said the company is shipping on a limited basis and working to safely bring all systems back online.
  • UNFI has engaged third-party cybersecurity firms and notified the FBI while implementing manual workarounds with suppliers to maintain critical deliveries.
  • The company’s stock has fallen roughly 9% this week, and UNFI refrained from updating full-year guidance while the full impact of the breach remains unclear.