Haggen files for Chapter 11 bankruptcy protection

By Cinch Translations

Washington-based regional grocery chain Haggen has been on a journey over the past year, as the potential expansion opportunity of a lifetime has been besieged and stymied by costly consumer and legal issues. Now the sum of those costs is taking its toll: this week, in a bid to start restructuring, Haggen Holdings LLC filed for voluntary Chapter 11 bankruptcy protection.

RELATED CONTENT: Haggen hits Albertsons with billion dollar lawsuit

According to a press release issued by Haggen, this decision wasn’t reached lightly. But the brand has struggled significantly since its acquisition of 146 Albertsons and Vons locations in December 2014, leading to the closure of 27 locations in August with potential for still more closures in the future to stay afloat. This restructuring could buy Haggen the time it needs to reposition and work to bounce back:

“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, in the press release. “The action we are taking today will allow us to continue to serve our customers and communities while providing Haggen with a process to re-align our operations to be positioned for the future.”

RELATED CONTENT: Albertsons and Safeway Divest 168 Stores to Pave the Way for FTC Merger Approval

As part of the restructuring, Haggen is reportedly looking into market interest and potential for selling off some of its locations throughout the five states where it expanded within the past year. The company also stated that it has secured “commitments for up to $215 million in debtor-in-possession (DIP) financing from its existing lenders to maintain operations and the flow of merchandise to its stores during the sale process,” and is seeking court approval to continue other vital functions like employee wages and customer programs. With these in place, Haggen hopes to stay on its feet in day-to-day operations throughout the Chapter 11 restructuring process and to emerge stronger and more stable by the end of the process. 


Featured Articles

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI