Grocery chain Haggen plans to exit the Pacific Southwest market, then realign its business around 37 core stores and a stand-alone pharmacy in the Pacific Northwest.
Haggen filed for Chapter 11 bankruptcy protection earlier this month and Haggen agreed to shutter all California stores as part of the process, NYSE Post reported. A few days prior to the bankruptcy filing, Haggen filed a lawsuit against Albertsons, claiming the chain sabotaged them by handing over locations that were already in jeopardy when Haggen bought 146 stores from Albertsons.
Haggen will continue to add more local and fresh items to 21 new stores that have proved successful in the Pacific Northwest.
A bankruptcy court will have to approve the plan before all the stores officially close. Employees at closing stores will be given 60-day notice. Several locations based in the company's home state of Washington will also be closing down.
Haggen perhaps tried to expand too quickly, as it went from 18 stores to 164 this spring, adding locations in California, Nevada and Arizona within months. The rapid expansion came after Haggen acquired Albertsons and Safeway locations that were sold when the two entities merged. Now, three-quarters of those locations will be shuttered in the first year.
-See this NYSE Post article
Is Haggen's failure sabotage, or something more fundamental?
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