Albertsons, Smart & Final win bids for Haggen stores
Supermarket chain Haggen auctioned off dozens of its stores Friday after trying -- and failing -- to expand this year. Above, a sign is installed at a Haggen store in Palmdale in March.
A Bankruptcy Court judge cleared the way Friday for several rival grocers to buy stores from Haggen, the supermarket chain that attempted a catastrophic expansion this year.
The 18-store Haggen operation had bought and begun rebranding 146 Albertsons, Vons, Pavilions and Safeway locations, which regulators had ordered sold as part of the merger between Safeway and Albertsons. After failing to entice shoppers, the company filed for bankruptcy protection in September and closed all but 37 stores in Washington and Oregon.
Haggen failed to win over shoppers in California, where many customers complained about its high prices.
Albertsons was the big winner, ironically, by winning the right to buy 33 stores. Eleven locations are in California, including one in San Diego and two in Bakersfield.
Another big winner is warehouse-style grocer Smart & Final, which picked up 32 stores. Sprouts won four stores.
Several other chains agreed to buy a single store, including Stater Brothers Market and Bristol Farms. Of the stores up for auction, 40 did not find buyers.
Haggen may also sell most of its remaining stores as well. In a court filing this week, the grocer asked to hold an auction Jan. 8 for its “core stores” in Washington and Oregon. Comvest Partners, the Florida investment firm that owns a majority stake in Haggen, could be a bidder.
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