Albertsons plans to operate 15 of the 29 Haggen stores it has agreed to acquire as a separate business unit under the Haggen banner, the company said Monday.
Of the 14 other stores Albertsons plans to acquire, all are former Albertsons locations that will be converted back to their original banner “over time,” the company said, with six operated by Albertsons’ Seattle division and eight by its Portland, Ore., division.
Of the stores that will retain the Haggen name, 14 are legacy units and one is a former Safeway in Oak Harbor, Wash., that was converted to the Haggen banner last year, the company said.
Bellingham, Wash.-based Haggen announced Friday it has agreed to sell its 29 remaining stores to Albertsons for $106 million. The sale requires approval from the U.S. Bankruptcy Court, which is scheduled to consider the matter on March 29.
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“Haggen’s original core group of stores set the gold standard in the markets they serve,” Bob Miller, chairman and CEO of Boise-based Albertsons, said. “We are proud to now be associated with this tradition.”
He said Albertsons plans to hire substantially all store employees and also to honor existing labor agreements.
Albertsons divested the stores to comply with an FTC requirement prior to completing its merger with Safeway in January 2015.
Haggen, which acquired 146 stores from Albertsons at the time, filed for Chapter 11 bankruptcy protection in September and has subsequently sold all of its locations.
Haggen said Monday the stores being acquired by Albertsons will benefit from a revitalized investment plan under the new ownership.
According to John Clougher, Haggen CEO, “We are excited about the opportunity to have the backing of Albertsons and look forward to being part of the Albertsons grocery family.
“Haggen has been a part of the Pacific Northwest and the Bellingham community for more than eight decades, and we will continue the traditions of operating great stores focused on community involvement, fresh Northwest products and great service.
“Our customers can be assured the Haggen focus on sustainably-sourced and locally-produced products will not change,” he said.
Date: March 14, 2016