93°F
weather icon Clear

Haggen files for bankruptcy

Haggen announced late Tuesday that is has filed for bankruptcy.

The Bellingham-Wash.-based grocer said it filed voluntary petitions for reorganization under Chapter 11 to the U.S. Bankruptcy Court for the District of Delaware in Wilmington.

The company's motion with the court said it intends to continue its day-to-day operations for customers, employees, vendors and suppliers, and other business partners during the restructuring. Additionally, it is seeking court permission to continue employee wages and certain benefits and honor certain customer programs. The motions are expected to be addressed by the court in the coming days.

Haggen also has retained Sagent Advisors to sell some locations in the five states it operates and explore market interest for various store locations. Discussions are underway to sell many of the company's remaining assets.

To accomplish this, Haggen 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.

"After careful consideration of all alternatives, the company concluded that a reorganization through the Chapter 11 process is the best way for Haggen to preserve value for all stakeholders," said John Clougher, chief executive officer of Haggen. "The action we are taking today will allow us to continue to serve our customers and communities while providing Haggen with a process to realign our operations to be positioned for the future."

Along with the changes, Haggen announced that Bill Shaner, who was CEO of the Pacific Southwest region that included Nevada, California and Arizona, is no longer with the company.

"We greatly appreciate his contribution to the company. John Clougher will be leading the company going forward," according to Deborah Pleva, a spokeswoman for the company.

Pleva said they would have no future comment at this time.

Haggen grew from an 18 store regional grocer to 164 stores through the purchase of Albertsons locations in Nevada, California, Arizona, Oregon and Washington in December 2014. The conversion process of the stores made Albertsons' cooperation and good faith implementation of the terms of the deal in their purchase agreement essential.

According to a statement by Haggen "this did not occur, as set forth in the company's recently filed lawsuit against Albertsons, which details a number of Albertsons' actions, which ultimately led to Haggen's failure in its efforts to convert newly acquired stores and ultimately resulting in the Chapter 11 filing."

Last week, the chain filed a $1 billion lawsuit against Albertsons claiming the chain made "false representations to both Haggen and the FTC (Federal Trade Commission) 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.

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
LISTEN TO THE TOP FIVE HERE
THE LATEST
Search for Central Market tenant continues

It’s been just short of two months since of a trio of friends, who are also longtime local property and business owners, made an announcement that piqued the interest of many in Boulder City.

About 83% of students feel safe at BC schools

Councilwoman Sherri Jorgensen was full of praise regarding a recent all-schools event at the high school.

Local aid groups get fed grant funding

The city has approved disbursement of almost $255,000 in federally-supplied community development block grant (CDBG) funds to three local entities: the Senior Center, Emergency Aid and Lend A Hand.

Planning commission approves Tract 350 variance request

Toll Brothers bettered their record in front of the planning commission to 2-1 last month when the developer got approval for a variance request related to the width of lots in Tract 350.

Kicking Off the New Year

Boulder City High School held its traditional back-to-school assembly this past Friday. School spirit and enthusiasm filled the gym as classes competed against one another to hold the coveted Spirit Stick. Aside from games, members of the fall sports teams performed to songs.

BC Electric’s Medo makes accusations about e-bike/scooter law

While the great majority of public comment surrounding the issues of unsafe usage — often by juveniles — of e-bikes and electric scooters was firmly on the side of the city “doing something,” not everyone is onboard.

So where does that RDA money come from?

It wasn’t all about donuts or whether super bright pink is an appropriate color for a building in the historic district. In addition to donuts it was about, well, dollars.

King to participate in essay contest

Last week, it was announced that fourth graders throughout the state are invited to participate in an essay contest, with the winner receiving the honor of lighting the 2025 U.S. Capitol Christmas Tree in Washington, D.C.

Really better buy that helmet

With a couple of significant amendments, the city council voted unanimously to pass an ordinance regulating the use of e-bikes and e-scooters in Boulder City. The ordinance passed unanimously Tuesday and will take effect on Sept. 18.