Gelson’s replacing short-lived Haggen grocery

A shuttered Haggen Inc. grocery store in South Laguna will become Gelson’s, officials from the chain announced Monday.

A U.S. Bankruptcy Court judge in Delaware approved the sale of the store at 30922 S. Coast Hwy. as part of a $36-million agreement involving eight properties in California. The fate of the Laguna Beach location was in limbo after the property owner opposed sales of stores in Laguna Beach and Carlsbad.

“We have many shoppers coming to our Dana Point store from Laguna Beach, Laguna Niguel, and Aliso Viejo [and] we’re thrilled to be able to open a store closer to these shoppers,” Gelson’s President and CEO Rob McDougall said in a statement. “We believe that the product and service changes we are making will enhance the shopping choices for this beautiful community.”

Wave Master Property Owner, LLC contended earlier this month that the sale would break terms of a lease and repayment costs are incorrect, according to bankruptcy court records. Wave did not return a call seeking comment.

Gelson’s plans to open in Laguna by late April and McDougall said he hopes to “retain as many local Haggen workers as possible while also giving opportunities to existing Gelson’s employees, as well as others who wish to join the Gelson’s family.”

Gelson’s officials did not say how many Haggen employees worked at the Laguna store, but all union staff will be rehired, Gelson’s spokesman Bron Heussenstamm wrote in an email.

Haggen had occupied the store for less than a year when the Bellingham, Wash.-based chain announced in September that it was filing for Chapter 11 bankruptcy. The company said it would close all 67 of its California stores after expanding from an original 18 stores in the Pacific Northwest. The Laguna store was one of nine Haggen locations in Orange County.

Smart & Final LLC purchased 28 stores in California, including one in Corona del Mar, for $56 million.