Is it game over for Haggen? Oak Harbor store among those that may be sold

Haggen’s bankruptcy could result in the sale of every last one of its stores, according to documents filed in U.S. District Bankruptcy Court in Delaware on Monday. Haggen has begun looking for a buyer for its “core stores” — the 37 successful Northwest stores that the bankrupt Bellingham grocer had previously planned to reorganize around.

By OLIVER LAZENBY

olazenby@soundpublishing.com

Haggen’s bankruptcy could result in the sale of every last one of its stores, according to documents filed in U.S. District Bankruptcy Court in Delaware on Monday.

Haggen has begun looking for a buyer for its “core stores” — the 37 successful Northwest stores that the bankrupt Bellingham grocer had previously planned to reorganize around.

The list includes the store in Oak Harbor. Haggen purchased the former Safeway store last year as part of a divestment process required by the merger of Safeway and Albertson’s stores.

Haggen is seeking court approval to hold an auction on Jan. 8, 2016, for the stores, with a sale hearing on Jan. 15.

This week, Haggen is auctioning 100 stores from its second phase of store closures. The grocer already closed 27 stores from an earlier phase of closures.

Haggen needs court approval for the auction since it is operating with financing from its creditors after filing for bankruptcy on Sept. 8.

It’s too early to tell what the court motion means for employees at Haggen’s five stores and standalone pharmacy in Whatcom County. The United Food and Commercial Workers Union, which represents the majority of Haggen workers, has a seat in court on the unsecured creditors committee — a committee that monitors the case and has some influence over it.

In a prepared statement, the union said it is at this week’s store auctions to “strongly present their position that these stores need to be bought by responsible store owners to ensure that our members can continue to provide for their families and give customers the great service that they expect.”

In an email, a Haggen spokesperson said “the auction is ongoing and results will be communicated once the process is complete.”