Haggen Seeks to Sell All Remaining Stores

The three-day-long process, in which each store will be individually auctioned to a group of approximately 40 bidders, comes after Haggen drowned financially in its effort to take over 147 Albertsons and Safeway stores it purchased in a Federal Trade Commission-approved merger between the two grocery giants. Albertsons also placed a $700,000 bid for its former store at 1350 N. Silverbell Road, which is slated to close by the end of the month. The company in bankruptcy filings said the conversions failed in part because a lack of cooperation from Albertsons, and its liquidity dropped precipitously, triggering the bankruptcy.

There’s a surprise bidder in bankrupt grocery chain Haggen’s auction to shed most of the Albertsons stores it bought in its ill-fated expansion bid: Albertsons.

Haggen’s OR and Washington markets, including stores in Seattle, Tacoma, Portland, and Eugene, among others, are scheduled for auction Thursday. Albertsons has not indicated how it would brand the Port Orchard store should it be successful in its bid. And Commerce’s Smart & Final Stores Inc. aims to claim Diamond Bar and Burbank.

The larger chain is also bidding on a former Safeway at 5415 Main St.in Springfield, which Haggen also had purchased in December. Those plans went sour as Haggen apparently acquired under-performing Albertsons and Safeway stores in communities ill-equipped to sustain the new owner’s upscale approach. Opening bid for the Springfield store was $1. The auction started November 9 and continues through November 11.

Haggen officials are now not commenting on this latest development, stating in an email that the auction process is ongoing and the results will be communicated once the process is complete.