Haggen Grocery Faces Massive Store Closures in CA

Northwest-based grocery purveyor Haggen plans to close a batch of stores that grew the company’s market into the southwest United States late last year.

With 18 stores to its name, Haggen completed a deal to take on an additional 142 stores through a December deal to acquire stores from Albertsons, Vons and Safeway according to San Diego ABC affiliate 10 News. The move multiplied Haggen’s retail outlets an astounding nine-fold.

In the short time since the purchase Haggen earlier this month filed for Chapter 11 bankruptcy. In the initial phase Haggen announced the closure of several California stores. As the current report notes the company will now close all stores in Nevada, Arizona and California.

Haggen said in a statement, “All employees of the non-core stores and the Pacific Southwest support office will receive 60 day notice of the pending store and office closures. During this process, all stores will remain open. Employees will continue to receive their pay and benefits through the normal course of business as previously approved by the court.”

Haggen Pacific Northwest CEO John Clougher said, “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. 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.”

In August the grocery chain announced an initial closure of 26 stores in California, Nevada, Arizona and Oregon and one in Washington, reported the Seattle Times. Bill Shaner, head of Haggen Pacific Southwest operations said at the time, “By making the tough choice to close and sell some stores, we will be able to invest in stores that have the potential to thrive under the Haggen banner.” Those closures were made predominantly in the Los Angeles and San Diego regions.