Bankrupt grocer Haggen receives court approval to sell 47 stores

Reuters News
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Posted: Nov 25, 2015 4:15 PM

(Reuters) - Bankrupt grocery chain Haggen said on Wednesday it had received court approval to sell 47 stores on the West Coast, most of which will go back to grocer powerhouse Albertsons, as part of a plan to emerge from Chapter 11.

Bellingham, Washington-based Haggen ran into debt trouble this year after a costly and ambitious expansion drive that included the purchase of 146 supermarkets from the much-larger Albertsons chain.

Now 30 stores are being sold back to Albertsons, which has been preparing for an initial public offering. The sales are subject to certain conditions, Haggen said in a statement.

Haggen sued Albertsons in September for damages that it said could exceed $1 billion, alleging its rival had failed to adhere to the terms of a $300 million purchase agreement for the stores. Albertsons has denied the charges.

Two other grocery chains have also sought Chapter 11 protection this year: the Northeast-based Great Atlantic & Pacific Tea Co, better known as A&P, and Fresh & Easy, which filed its second bankruptcy in October.

The case is: In Re: Haggen Holdings LLC, Case No. 15-11874 in U.S. Bankruptcy Court for the District of Delaware

(Reporting by Tracy Rucinski; Editing by Leslie Adler)