61°F
weather icon Mostly Cloudy

Haggen to close; grocer leaving Pacific Southwest

The Boulder City Haggen grocery store is among the 127 stores the grocery chain plans to close by the end of the year.

The move will leave the community with only one full-service grocery store.

All seven of the Nevada stores the Bellingham, Wash.-based grocer opened in June will be closed as the company realigns its operations around 37 core stores and one standalone pharmacy in the Pacific Northwest after declaring bankruptcy in early September.

Also slated to close are 12 stores in Oregon, 10 in Arizona, 83 in California and 15 in Washington. The closures are pending approval from the bankruptcy court.

The company blamed a number of actions by Albertsons for its failure after it acquired 146 stores for $300 million from the chain as part of its merger with Safeway. The Federal Trade Commission announced in January that Albertsons and Safeway agreed to sell the stores to win U.S. antitrust approval for the merger.

On Sept. 1, Haggen filed a $1 billion lawsuit against Albertsons claiming the chain made "false representations to both Haggen and the FTC about Albertsons' commitment to a seamless transformation of the stores into viable competitors under the Haggen banner." It also claimed Albertsons provided misleading information that caused Haggen to raise prices, deliberately overstocked perishable products at newly acquired stores, and that the company moved Haggen products into Albertsons stores.

Twenty-one of the stores acquired in the Albertsons' transaction will remain open.

"Haggen plans to continue to build its brand in partnership with its dedicated corporate support and store teams. Haggen has a long record of success in the Pacific Northwest and these identified stores will have the best prospect for ongoing excellence," John Clougher, chief executive officer of Haggen Pacific Northwest, said in a statement. "Although this has been a difficult process and experience, we will remain concentrated in the Pacific Northwest where we began, focusing on fresh Northwest products and continuing our support and involvement in the communities we serve."

The stores slated to close will remain open as 60-day notices of the pending closures are issued, according to a company statement. Haggen has been working with Sagent Advisors to find a buyer for the stores.

Additionally, Haggen has requested that the FTC waive the restriction on its order that prevents Albertsons from hiring Haggen employees.

"This has been a priority for Haggen management to ensure its employees can take advantage of every opportunity available to them," Haggen said in its statement.

Hali Bernstein Saylor is editor of the Boulder City Review. She can be reached at hsaylor@bouldercityreview.com or at 702-586-9523. Follow @HalisComment on Twitter.

MOST READ
THE LATEST
The bond between Boulder City and Searchlight

If you talk to the staff at Harry Reid Elementary School in Searchlight, you may hear them describe their campus as “the heart of the community” or “the jewel of the desert.”

Council gives lake-view lot to chamber

After a very short introduction by city staff and without discussion, the city council voted unanimously last week to give a 50-foot-square piece of city-owned land to the Boulder City Chamber of Commerce Foundation.

20-year lease extension up for vote

The gun club was not the only entity with lease extension business before the city council in their meeting last week.

Commercial zoning in Eldorado approved

The going-on-a-year-long process of adding four acres of land to Boulder City and approving it for commercial use is all over except the shouting as the city council voted unanimously and without discussion as part of the consent agenda to approve the changes to the city’s land use map as well as amending the zoning map to allow for future commercial development.

Out of this world: A look at Fisher Space Pen

In a popular episode of “Seinfeld,” appropriately entitled “The Pen,” Jerry and Elaine travel to Florida to see his parents. There, a neighbor, Jack Klompus, shows off a pen that the astronauts used in space because of its ability to still write, even when upside-down.

City council approves 15-home Beazer tract

Without any discussion, the city council Tuesday approved a 15-home subdivision as part of a single vote on the consent agenda.

Council approves additional $140K in construction spending

As part of the consent agenda in Tuesday’s meeting, the city council agreed to add about $140,000 to the amount previously agreed to be paid to GCW, Inc. for management, engineering, design and support services for two projects in Boulder City.

UNLV intern joins BCR staff

Beginning this week, the Boulder City Review welcomes Ian Cruz to its staff as an intern for the spring semester.

Metro officer involved in shooting in Boulder City

Dozens of law enforcement officers responded Friday, Jan. 24, to the 700 block of Sixth Street following a reported shooting.