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Eight months after acquiring 146 stores divested from the Albertsons/Safeway merger, Haggen is closing or selling 27 locations in California, Arizona, Nevada, Oregon and Washington, with more to follow as part of the Bellingham, Wash.-based retailer's "right-sizing strategy."
It was not clear how many jobs will be affected as a result of the closures and sales.
“Haggen’s goal going forward is to ensure a stable, healthy company that will benefit our customers, associates, vendors, creditors, stakeholders as well as the communities we serve,” said Haggen Pacific Southwest CEO Bill Shaner. “By making the tough choice to close and sell some stores, we will be able to invest in stores that have the potential to thrive under the Haggen banner.”
Through the acquisition, the Bellingham, Wash.-based Haggen expanded from 18 stores with 16 pharmacies and 2,000 employees in the Pacific Northwest to 164 stores and 106 pharmacies employing more than 10,000 people in Washington, Oregon, California, Nevada and Arizona.
“Though Haggen has grown substantially, we remain committed to our core values and to support regional farms, ranches and food producers and strengthen the communities around our stores," said John Clougher, CEO of Haggen's Pacific Northwest division, whose original stores are reportedly performing well.
“We’re grateful to have an outstanding team along with the support of our vendor partners, financial backers and friends in the community as we take our next steps forward," Clougher's and Shaner's joint statement continued. "Looking ahead, we will work hard every single day to earn the trust and business of our guests. We will continue to support community events and donate to schools. We will offer our customers the freshest and most local products we can find and the genuine service they deserve. And we will engage in lively discussions about how we can improve. We will remain actively involved in making our communities even better, and we will stay committed to the values that have always guided Haggen.”
Last month the company began making major cuts to worker's hours in the Seattle area, and also conducted hundreds of layoffs and work-hour reductions in California, Arizona and Nevada.
Haggen was also recently sued for $41.1 million by Albertsons, which alleges that Haggen didn’t pay for part of the inventory that came with the stores. For its part, Haggen said the lawsuit came in response to its own allegations that Albertsons violated the purchase agreement for the stores.
The complete list of stores slated for closure can be found here.