Operators of Haggen Food & Pharmacy have filed motions with the federal bankruptcy court to sell eight of the retailer’s California stores to Gelson’s Markets, and another 28 in California and Nevada to Smart & Final LLC.
A Haggen statement said three of the San Diego County stores – in Carlsbad, Del Mar and La Jolla – would be sold to Compton-based Gelson’s, which would be the first in the local market for the upscale specialty grocer.
Ten of the local stores would go to Commerce-headquartered Smart & Final, a discount warehouse-style retailer with 10 current stores in San Diego County. The Haggen stores that would be acquired by Smart & Final are in Carlsbad, Chula Vista, Coronado, El Cajon (two stores), La Mesa, Santee, Tierrasanta, Mira Mesa and San Ysidro.
Bellingham, Wash.-based Haggen said in a statement that it has filed motions with the bankruptcy court as it seeks approval to establish procedures for ongoing sales of store locations. The grocery chain plans to close more than 100 stores it acquired earlier this year in California, Nevada and Arizona, as it reorganizes to focus on its original Northwest base.
Haggen has also filed motions asking the bankruptcy court to approve two separate asset purchase agreements, involving Gelson’s and Smart & Final. No financial data was disclosed for those transactions.
Haggen is seeking a court hearing on Oct. 19 to discuss the company’s proposed bid procedures for its closing stores. Parties interested in acquiring stores need to submit an indication of interest no later than Oct. 26, with an auction tentatively scheduled for Nov. 9.
Following recent layoff notices impacting approximately 1,200 workers in the local market, Haggen has a total of 25 San Diego County stores set to close by year’s end.