Haggen Files Sale of $12M in Assets Back to Albertsons-Safeway
Following its bankruptcy filing just over a week ago, Haggen has made strides to sell $12.16 million in assets back to Albertsons-Safeway, the merger of which divested 146 stores to the struggling Pacific Northwest chain late last year.
According to a report in the Puget Sound Business Journal, Haggen filed a sale as part of its bankruptcy proceedings in the U.S. District Court of Delaware on Wednesday, which includes $3.57 million in inventory as well as $8.9 million in "records and goodwill," which includes "prescription records, customer records, lists and medical profiles, as well as all other written or recorded information relating to pharmacies' operations," the Journal reported.
The proposed sale is the latest attempt on Haggen's part to streamline operations following a series of severe growing pains in the wake of the acquisition – which grew the chain from 18 stores to 164 almost immediately -- which in addition to its Chapter 11 filing, also includes a $40 million lawsuit filed in July by Albertsons Cos. over an inventory dispute, and a $1 billion suit that Haggen filed against Albertsons earlier this month alleging a "coordinated and systematic [effort] to eliminate competition in violation of Federal Trade Commission orders and various federal and state laws."
In an effort to combat what seems to be an endless streak of bad luck, Haggen announced plans in August to close or sell 27 locations in California, Arizona, Nevada, Oregon and Washington, as part of what the grocer dubbed a "right-sizing strategy," to focus on its most profitable locations.
Most recently, the company was approved for $215 million in debtor-in-possession (DIP) financing from its lenders to retain operations as it attempts to regain its footing.
The asset transfer deal has been signed by both Albertsons VP Bradley Beckstrom and Haggen CFO Blake Barnett, though the date these assets would be transferred is yet undetermined. Both companies must agree upon dates by Oct. 15, or the "deal with automatically terminate," the Journal reported.