Haggen Plans to Close All Its Stores in California

by San Antonio Attorney

Grocery-chain Haggen will close its stores in California.  About six thousand workers are facing a mass layoff, according to a union spokeswoman.

The United Food and Commercial Workers International (UFCW) made an announcement in connection to Haggen’s statement about shutting down its 100 locations and leaving California.

Haggen is closing the stores as part of the Chapter 11 bankruptcy process.

Union officials questioned the company’s decision to shut the stores.  They also said that employees were frustrated with the bankruptcy process.  The union argued that Haggen did not make proper arrangement for the sales process or even tried to encourage buyers to run the stores.

They are, however, pleased to know that employees may work again under Albertsons management.  On Friday, Albertsons was given permission by the bankruptcy court to rehire workers affected by Haggen’s decision to leave California.  Earlier, the Federal Trade Commission had forbidden Albertsons from hiring Haagen’s employees to avoid employee poaching while the changeover of ownership has not been completed.

There is no exact date when the mass layoffs will occur, although the grocery-chain has said that all Haggen locations had been given a 60-day notice of the closures.

Earlier this year, Haggen took over 146 stores, including in Arizona.  The company places blame on Albertsons for the bankruptcy, saying the supermarket giant sabotaged the conversion of its new stores into a Haggen brand – which sells quality products at low prices.

Experts said Haggen’s troubles had long been expected.  Since it opened, the main problem was the pricing of it products.  The company did not do its own consumer research, and it simply relied on Albertsons and Safeway – their seller and rival – to guide them on how to price their products.

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