Haggen announced late Tuesday night, “that in order to reorganize around its core profitable stores, it has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code for the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The company has received commitments for up to $215 million in debtor-in-possession (DIP) financing from its existing lenders to maintain operations and the flow of merchandise to its stores during the sale process.”
The press release also states, “Haggen grew from an 18 store regional grocer to 164 stores through the purchase of Albertson’s locations in December 2014. The associated conversion process of the stores made Albertsons cooperation and good faith implementation of the terms of the deal in the Asset Purchase Agreement essential.”
Read the complete statement online.