By Nadine Shaalan–
As the saga between Haggen and Albertsons rages on, Haggen announced on Tuesday, Sept. 8, it filed voluntary Chapter 11 bankruptcy protection.
The troubled grocery chain said it secured $215 million in debtor-in-possession financing to continue its day-to-day operations while it reorganizes.
Part of that restructuring will include selling off several stores in the five states where it operates.
“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 re-align our operations to be positioned for the future.”
Haggen fingers Albertsons for its woes, claiming the grocery giant did not cooperate in good faith with the terms of the purchase agreement in which Haggen acquired 146 Albertsons locations. (The sale was part of an FTC-mandated divestiture to allow Albertsons to purchase Safeway.)
The two companies are suing each other over the handling of the transition. Haggen spokesperson Deborah Pleva said the claims made in the suit against Albertsons do not apply specifically to the Anthem location.
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