West Coast grocery chain Haggen will shutter or sell 27 stores in California, Arizona, Nevada, Oregon and Washington. Most of the stores being closed or sold were acquired when the supermarket purchased 146 Albertsons and Safeway stores, bringing the company’s scale from 18 to 164 locations.
All 27 stores will continue to operate as they go through closing process, which will take approximately two months. Additional stores will be sold or closed in the future as part of Haggen’s “right-sizing strategy,” according to a company statement.
Haggen’s original stores “continue to perform well,” according to the statement. The grocer has not determined how many jobs will be affected as a result of the closures and sales. However, California Governor Jerry Brown has signed a bill protecting grocery workers from being fired because of changes in store ownership.
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The closures are taking place amidst a rough period for Haggen. In July, Albertsons sued Haggen, accusing the grocer of failing to pay $36 million for inventory as part of the 146-store purchase.
“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 Bill Shaner, CEO of Haggen, Pacific Southwest. “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.”
