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West Coast Grocer Haggen Files for Chapter 11

Submitted by jhartgen@abi.org on

West Coast grocer Haggen Holdings LLC filed for chapter 11 bankruptcy protection Tuesday, shortly after suing rival grocer Albertsons Cos. over a $300 million deal, the Wall Street Journal reported today. Haggen bought 146 Albertsons locations last year, hoping to grow into a super-regional chain. Haggen sued rival grocer Albertsons in federal court Sept. 1, alleging Albertsons engaged in “coordinated and systematic efforts to eliminate competition and Haggen as a viable competitor in over 130 local grocery markets in five states.” In court papers, Haggen accused Albertsons of destroying the profitability of the stores through a number of tactics, including allegedly misusing confidential data. Albertsons, which has yet to answer the lawsuit, sold the stores as part of its acquisition of Safeway Inc., a transaction that made it the second largest grocery chain in the U.S.