Haggen files for bankruptcy


Grocery chain that took over several Albertsons across the West filed for Ch. 11 protection Tuesday.

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BY JACOB PALMER | DIGITAL NEWS EDITOR

Haggen, the grocery chain that took over several Albertsons and Safeways across the West, filed for Ch. 11 protection Tuesday.

Haggen has struggled since expanding 146 stores after Albertsons and Safeway merged. The bankruptcy filing comes after it sued Albertsons, alleging fraud during the acquisition period.

Haggen leaders said in a release they’ve received commitments for up to $215 million in debtor-in-possession financing from its existing lenders.

The chain expects to maintain both its operations and merchandise flow during the sale process.

(SOURCE: Portland Business Journal)

Albertsons has filed a countersuit.

Albertsons sued the Washington grocer for $41 million for failing to pay for inventory; workers have sued for wrongful termination; and a union has filed grievances with both Haggen and Albertsons for violating union contracts.

In a statement Tuesday, Haggen said Albertsons’ alleged attempts at sabotage ultimately led to the bankruptcy filing. Haggen said it has received commitments for up to $215 million in debtor-in-possession financing from its existing lenders to maintain operations and the flow of merchandise to its stores during the sale process.

(SOURCE: OregonLive.com)

RELATED NEWS: Haggen suing Albertsons for $1BStore BoughtHaggen closing five Oregon stores as part of West Coast downsizeHaggen assumes control of Albertsons, Safeway storesHaggen buys Safeway and Albertsons stores in deal to appease FTC

 


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