Haggen Asks Court Permission to Close 100 More Stores

Haggen
Paul Wellman (file)

In the midst of Chapter 11 bankruptcy, Haggen asked for court permission Thursday to close most of its remaining stores in the Pacific Southwest — including all 5 locations in Santa Barbara County — in addition to the 27 stores it already plans to close. As stated in a press release from Haggen, the 100 additional store closures proposed today would allow the company to realign itself around 37 Pacific Northwest stores described as a “core group of successful stores.” Although most of the stores Haggen wants to close are in California, the Seattle Times is reporting that the list includes 21 stores in Washington and Oregon and that Haggen said in court documents it is unlikely a third party would offer to buy these stores.

As the Oregonian reports, the court filings state that the 100 stores are causing Haggen to lose $400,000 each day and that closing the stores would save the company $60 million before the end of the fiscal year.

Should the court approve the closures, Haggen Southwest employees will receive two months notice of store closures, will continue to receive pay and benefits, and stores will stay open during the process, the press release said. Additionally, Haggen said it continues to work with the Federal Trade Commission (FTC) to lift a restriction that has prevented laid off Haggen employees from seeking work at Albertsons since July.

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