Haggen files for bankruptcy, blames rival
U.S. grocery store chain Haggen has filed for bankruptcy, less than a month after suing rival Albertsons for more than USD 1 billion (EUR 893.9 million).
In addition, the company announced that co-CEO Bill Shaner is no longer with the company. Haggen disclosed no details on Shaner’s departure, only saying through Spokesman Deborah Pleva, “We greatly appreciate his contribution to the company.” John Clougher, she said, would be running the company for the
“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,” he said. “The action we are taking today will allow us to continue to serve our customers and communities while providing Haggen with a process to
Haggen made headlines by purchasing more than 100 stores from rival Albertsons in December of 2014, an antitrust requirement of a merger between Albertsons and Safeway. Clougher’s statement said the bankruptcy filing would allow a reorganization around what he called the company’s “core profitable stores.”
The company currently operates 164 stores in five U.S. states, and the statement indicated some of those locations will be sold, but the statement goes into no further detail.
Haggen’s lawsuit has alleged that Albertsons deliberately sabotaged Haggen’s ability to capitalize on the new store acquisitions, and the statement indicated the company’s position that it was this campaign by Albertsons that in part has led to the Chapter 11 filing.