Albertsons Suing Haggen Over Inventory Agreement

Albertsons Cos. has filed a lawsuit citing breach of contract alleging that Haggen Food & Pharmacy has refused to pay almost $40 million for inventory following Haggen's acquisition of 146 Albertsons and Safeway stores, according to reports.

According to Courthouse News Services, Albertsons said that Haggen agreed to pay for all store inventory within 30 days, but only paid for stock in 108 stores, falling short on its obligation for the remaining 38 stores.

In an email, Haggen spokeswoman Deborah Pleva said that it notified Albertsons of "violations of its obligations under the parties' purchase agreement, and possibly the related FTC consent decree and orders and requirements of state attorneys general."

Haggen had "hoped that the parties could amicably address these issues," Pleva added.

Calling Albertsons' legal action "nothing more than a strike suit to avoid addressing its wrongful conduct," Pleva said that the Nortwest grocer "will mount a vigorous defense and aggressively prosecute its counterclaims."