US: Haggen agrees to sell core stores to Albertsons for $106M

Haggen agreed to sell its original stronghold of Pacific Northwest stores to Albertsons in what seems to be the final chapter of a convoluted grocery-empire saga.

In a news release late Friday, the Bellingham grocer said Albertsons will acquire 29 of its so-called core stores, a group of locations in Washington and Oregon that Haggen had intended to retreat into when it became apparent its big expansion in the U.S. Southwest was doomed.

A lengthy contract filed in bankruptcy court indicates Albertsons will pay a “base amount” of $106 million, subject to various adjustments. The deal requires approval from the bankruptcy court in Delaware overseeing the dismantling of Haggen’s remains.

Albertsons bid for only 29 of Haggen’s locations. On Friday Haggen notified Washington state authorities it will be laying off 78 employees in Puyallup and 67 in Port Angeles, as these stores were not included in the deal. The Oregon City, Ore., Haggen also will be closed, provided the court gives its approval to going-out-of-business sales.

Full content: The Wall Street Journal

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