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Bellingham, Wash.-based Haggen has approved a bid by Albertson's LLC to acquire 29 of the defunct grocer's stores, 15 of which will continue to be operated under the Haggen banner.
The March 18 auction for those stores has been cancelled as a result of the deal.
Three locations – in Oregon City, Ore., and Puyallup and Port Angeles, Wash. – are not a part of the deal, and Haggen will seek approval to begin going out of business sales for those non-acquired stores.
Haggen will now consist of 14 Haggen stores and one converted location in Oak Harbor. The remaining 14 stores, which were previously divested by Albertsons, will transition over time back to the Albertsons banner.
Haggen also announced that it's seeking court approval for a new financing commitment from Albertson’s LLC in connection with its bid. The financing will replace the existing facility that was set to expire on March 11, 2016 and will be used to fund operations through the close of the sale process and the ongoing administration of the company’s bankruptcy cases.
“We are excited about the opportunity to have the backing of Albertsons and look forward to be part of the Albertsons grocery family. 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,” said Haggen CEO John Clougher.
Motions seeking court approval for the sale and new facility will be heard on March 29.