Haggen closing its California stores
September 24, 2015
Grocery chain Haggen announced Thursday plans to close 127 stores in California, Arizona and Nevada. Employees will receive a 60 day notice of pending store and office closures.
Haggen plans to continue operating 37 stores in Oregon and Washington. The other stores are up for sale.
Earlier this year, Haggen purchased 146 Albertsons, Vons, Pavilions and Safeway stores. Before the purchase, it operated just 18 stores.
Shortly after Haggen took over the stores, prices increased and some of the previously stocked items were no longer available. Many of the stores’ customers left.
Earlier this month, Hagen launched a $1 billion lawsuit against Albertsons and then filed for Chapter 11 bankruptcy protection.
Haggen accuses Albertsons of providing false, misleading and incomplete retail pricing data, causing Haggen to unknowingly inflate prices. The grocer also alleges Albertsons deliberately understocked certain items and overstocked perishable items.
Haggen claims Albertsons’s actions led to the bankruptcy filing.
Albertsons also filed a lawsuit against Haggen. Albertsons claims Haggen failed to pay for more than $36 million for merchandise that was included in the sale.