Port Orchard Haggen grocery store to close

These include 16 of their original stores, as well as 21 stores acquired earlier this year.

The Haggen grocery store chain wants to close 100 stores – including one at 5415 Main St.in Springfield – according to documents filed Thursday in U.S. Bankruptcy Court.

In our area, those 60 days are already coming to an end.

Haggen, the Washington State-based grocer that made a bold gambit to take over more than 100 stores in several western states, taking over two former Vons supermarkets in the Santa Clarita Valley, announced Thursday it will pull out of the Pacific Southwest completely. “Haggen has a long record of success in the Pacific Northwest and these identified stores will have the best prospect for ongoing excellence”, said John Clougher, Chief Executive Officer of Haggen Pacific Northwest.

In addition, Haggen also wants to close a big chunk of its Northwest stores: seven in Oregon and 14 in Washington, where the grocer is headquartered.

A Haggen spokesperson couldn’t comment on whether the company plans to close more stores in the future.

The quick surrender in Arizona and elsewhere stems from the disastrous December purchase of stores shed by Albertsons and Safeway after Albertsons LLC bought out Safeway in March 2014.

Haggen previously said it has received commitments for up to $215 million in debtor-in-possession financing from its existing lenders to maintain operations and the flow of merchandise to its stores during the sale process. The Silverdale and Port Orchard stores switched to the Haggen Northwest Fresh brand in March, followed by the East Bremerton store in June.

In court filings, Haggen said no third party is likely to make a firm offer for these stores, and running them results in negative cash flow of $400,000 a day, the Seattle newspaper reports.

Last month, Haggen officials said they were shuttering half the company’s Arizona stores and suggested it was a move that would stabilize the business.

During the 60-day notification process, the stores will remain open, according to a report in the Orange County Register.

Haggen filed for Chapter 11 bankruptcy protection September 9 on the heels of an aggressive, and ultimately disastrous, expansion.

In a statement sent to employees Tuesday, UFCW 21 President Todd Crosby said union representatives were advocating on behalf of Haggen workers in the bankruptcy proceedings.