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West Coast grocer Haggen files for Chapter 11 bankruptcy

Staff writer ▼ | September 9, 2015
Haggen, the West Coast regional grocer has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code for the U.S. Bankruptcy Court for the District of Delaware in Wilmington.
Haggen
Bankruptcy   Haggen to sell locations and assets
The company has received 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.

The company has made customary first-day motions with the Bankruptcy Court intended to support the continuation of its day-to-day operations for customers, employees, vendors and suppliers, and other business partners during the restructuring.

As part of that, it is seeking Court approval 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.

The company has engaged Sagent Advisors to market for sale some locations in the five states it operates and to explore market interest for various store locations. Discussions are underway with interested parties to sell many of the company’s remaining assets.

Haggen grew from an 18 store regional grocer to 164 stores through the purchase of Albertson’s locations in December 2014.


 

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