Sobe’s-Empire: The cyberattack has already cost IGA’s parent company $25 million

A computer attack on Empire, the parent company of IGA Grocer, in November has cost the company $25 million so far.

• Also Read: Ransom demanded for hacked Sobeys/IGA data

“Based on available information, Empire estimates the financial impact to full-year net income for fiscal 2023 will be approximately $25 million, net of insurance recoveries,” Empire wrote in financial results released yesterday.

Among other things, the attack made it impossible for customers to place online orders, which are still not available in all the places they were before the incident.

A brief press release published in early November indicated only that the company was experiencing “computer issues” and has never commented on the situation since.

Empire disclosed the privacy incident to the Commission d’access à l’information du Québec on November 11.

Payroll issues

Several employees said Log They have been struggling with their salaries for weeks after the attack.

Retailers faced problems in the delivery of goods to the store.

In Quebec, IGA, IGA Express, Shell, Bonnychoix, Tradition, Bonnysoir, Voisin and Rachel Berry stores all rely on the Sobeys/Empire system for their orders.

Increasing profits

Profits at Empire also rose in the second quarter ended November 5.

They reached $189.9 million, compared to $175.4 million at the same time last year.

Sales also increased from $7.32 billion to $7.64 billion.

At stores open at least a year, sales rose 3.9% and 3.1% when gasoline is excluded.