We blogged last year about how the federal government's probe into the anti-competitive effects of the Whole Foods-Wild Oats acquisition had ensnared the Portland-based New Seasons Markets. Back then, the Federal Trade Commission wanted to see a bunch of sensitive New Seasons financials as part of its investigation. Now Whole Foods' lawyers are asking to see them to help fight off the feds.

The New Seasons folks don't want to show their competition their books and plans -- particularly a vicious player like Whole Foods -- and I can't say as I blame them. There's talk of risking jail time rather than give in to the request for information. As the economy continues to tank and $1.99 cucumbers get harder and harder to sell, this potentially ugly episode is probably the last thing Whole Foods needs.