Haggen sells 36 stores, takes bid on 55 more
Haggen said Friday the U.S. Bankruptcy Court has confirmed the sale of 36 stores to two buyers, with auction bids by multiple retailers for another 55 stores scheduled for review by the court in late November.
The 91 stores will fetch approximately $139 million, the company said.
The Bellingham, Wash.-based company has additional units for sale, including its core stores in the Pacific Northwest, which are scheduled to be auctioned off in January
According to Haggen, Smart & Final, Commerce, Calif., will acquire 28 stores for approximately $56 million and Gelson’s Markets, Encino, Calif., will acquire eight locations for approximately $36 million under stalking-horse bidder packages.
The company said it has received bids during an auction process for 55 additional stores for "more than" $47 million — bids that must still be approved by the bankruptcy court at a hearing scheduled for Nov. 24.
Of those 55 stores, Boise, Idaho-based Albertsons bid on 33 (including 12 in Washington, 11 in California, four in Oregon, three in Nevada and three in Arizona); Smart & Final bid on four additional locations in California; Sprouts Farmers Market, Phoenix, bid on four in California; Tawa Supermarkets, Buena Park, Calif., bid on three (two in California, one in Oregon); and Stater Bros. Markets, San Bernardino, Calif., bid on one California location, with bids for nine other stores in California and one in Oregon from a variety of independent operators and other buyers.
Responding to the auction, the United Food and Commercial Workers International Union raid Friday, "We are completely committed to helping UFCW members and their families through this extremely difficult period.
“The Haggen stores auction has concluded with a large portion of stores being sold to Albertsons. We look forward to working with Albertsons to ensure that these stores are a success and that the hard-working men and women are able to continue serving their communities and earning the wages and benefits they deserve.
“For stores that were sold to other employers, we are actively seeking opportunities to negotiate with new owners so that we can quickly secure jobs and peace of mind for our hard-working members.
“For the remaining stores that have not been sold, we know this brings great stress and uncertainty to our members and their families. We do not know if any further auctions or sales will occur and it is likely that all unsold stores will close within the coming weeks. Our primary focus going forward will be helping our members find good jobs to support themselves and their families.
“No matter the next steps, we are a union family and we will face these challenges by standing togethe
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