BELLINGHAM, WA - Could it be that the Albertsons/Haggen saga has finally come to end?
After a tumultuous ride in legal battles, the latter has accepted an acquisition bid from the former for $106 million for 29 of its 32 core stores, 22 in Washington and 7 in Oregon, just before they were to go on the auction block. In addition, Albertson is to pay a closing adjustment amount for the stores and put down a deposit of $68 million.
As we previously reported, Haggen had scheduled and re-scheduled the auction several times without explanation prior to the announcement, presumably while in discussion with Albertsons.
Not long ago, however, the two sides were back and forth in court with lawsuits over inventory and contracts concerning Haggen’s acquisition of more than of Albertsons’ stores in 2014.
So how has Haggen responded to this twist in events?
“We are excited about the opportunity to have the backing of Albertsons and look forward to be part of the Albertsons grocery family,” John Clougher, CEO of Haggen, said, according to a press release. “Haggen has been a part of the Pacific Northwest and the Bellingham community for more than eight decades and we will continue the traditions of operating great Haggen stores focused on community involvement, fresh northwest products and great service.”
Haggen added that 15 of the stores operating from its home base of Bellingham, Washington, will continue to operate under its banner.
“Our customers can be assured that the Haggen focus on sustainably-sourced and locally-produced products will not change,” Clougher added. “Haggen has operated as a partner to the communities it has so proudly served and will continue to do so. We thank our dedicated stores crews, loyal customers, vendors, partners and others that have supported us. We are looking ahead to a promising future.”
Two Washington stores and one Oregon store remain, however, added to a list of subjects that the retailer will put in front of the U.S. Bankruptcy Court.
That string of topics to be put in front of a judge include:
- Approval to begin going out of business sales for stores not included in the sale agreement.
- Approval for the sale to Albertsons.
- Approval for a new facility with Albertsons.
- Approval for a new financing commitment.
So will this be the end of the tumultuous legal relationship the two companies have shared? Bankruptcy court is scheduled to hear the case and consider approval of the sale agreement on March 29, 2016, so keep checking in with AndNowUKnow.
