Haggen to sell 36 stores to Gelson's, Smart & Final

Supermarket chain Haggen announced that both Gelson's Markets and Smart & Final are interested in buying some of its locations. The news comes just weeks after Haggen filed for bankruptcy and announced it would close all of its California, Nevada and Arizona stores.

According to a statement from Haggen, Gelson's signed an agreement to buy eight California stores and Smart & Final has agreed to 28 stores in California and Nevada, reported The Los Angeles Times. Both agreements are subject to approval by the bankruptcy court.

Gelson's is a high-end chain with 18 stores in Southern California and Smart & Final is just the opposite, a discount chain. Smart & Final has entered into an agreement to buy the leases and assets for $56 million in cash, if approved. It will turn the former Haggen locations into Extra! stores, which are larger than the name-brand locations.

An auction is scheduled for Nov. 9.

Haggen has struggled since it bought 146 Albertsons, Vons, Pavilions and Safeway stores at the end of last year and was forced to file for Chapter 11 bankruptcy in September.

For more:
-See this Los Angeles Times article

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