Haggen Plans to Pull Out of Pacific Southwest Market Completely
BELLINGHAM, WA – Haggen is looking to close 100 more stores in a full-scale exit from the Pacific Southwest market.
After months of struggling and a legal back-and-forth with Albertsons, the retailer has decided to realign its operations around 37 core stores and one stand-alone pharmacy in the Pacific Northwest as part of the Chapter 11 process.
This is the second round of closures for the company, which last month announced it would seek to sell or shutter 27 stores in California, Oregon, Arizona, and Washington. In the weeks that followed, Haggen filed a lawsuit amounting to $1 billion in damages against Albertsons and reportedly parted ways with CEO Bill Shaner.
Shaner was hired in December 2014 for Haggen’s Pacific Southwest division as it anticipated its expansion into two new states.
Haggen’s footprint ballooned as it went from 18 stores to 164 after buying more than a hundred locations from Safeway and Albertsons.
Now, only 21 of those newly-acquired stores will continue operating along with 16 of Haggen’s historical stores.
The company is seeking approval from the Bankruptcy Court to conduct store closing sales.
According to a press release, Haggen’s historical stores have seen “strong sales growth over the past year,” while the 21 newly-acquired stores have “proven successful under the Haggen banner.”
John Clougher, CEO of Haggen Pacific Northwest, commented in a press release that these 37 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,” he said.
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.
Approximately 11,000 people are currently employed at Haggen, according to the Seattle Times.
As we previously reported, Haggen and Albertsons are now “cooperating” to find employment for former Albertsons workers. As this was a prior restriction in the FTC Order with Albertsons, both retailers are seeking a waiver to secure work for displaced Haggen employees. The waiver, however, will require Commission approval, which the FTC is seeking to obtain on an expedited basis.
Stay tuned to AndNowUKnow as we continue to follow this developing story.
