Haggen Begins to Collect Bids to Sell Off Stores

by San Antonio Attorney

Haggen is in the process of collecting bids from prospective buyers.  The prospective bids come from the 14 stores in Washington, California, Oregon, Nevada and Arizona.  Haagen finally has court approval to move forward with its plan to auction off stores.

The interested purchasers have a varied choice from furniture stores or other grocers have until Oct. 26 of their decision to inform Haggen of their intent to bid and the deadline should be not later than November 22.  The company will kick of the auction by November 9.

Auctioning is an essential part of the restructuring as a consequence of the Chapter 11 bankruptcy process commenced after Haggen bought and tried to merge 147 Albertsons and Safeway stores upon acquisition.  Haggen is selling off the majority of the stores as part of the bankruptcy proceedings.

The go signal for sales procedures will initiate the sales of Haggen’s stores to grocery chain Gelsons.  The two have already reached an agreement to purchase Smart & Final grocery and eight stores in California.

Haggen also received court approval that allows financial compensation for employee’s time off, which they have accrued before the Sept. 9 bankruptcy filing.  But this pay also has its limits though, according to an official statement.

Haggen has tried working diligently with its lenders to come up with a resolution on the payment of pre-petition Paid Time Off.  These will include vacation, sick, and other paid time off since the bankrupt filing last September.

The total list of stores the company plans to sell equates to 100 stores.  However, Haggen will be putting six other stores that it has identified as a part of its 37 successful main stores on the block as part of its bankruptcy proceedings.

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