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According to the Seattle Times report, Haggen, that has been struggling, is seeking permission from bankruptcy court to close more 100 stores, which include remaining four in Arizona. This is because the grocer is unable to find buyers.
On Thursday, it was announced by Haggen that it is leaving Arizona, Nevada and California. The chain was forced to file for bankruptcy protection as the dramatic expansion went wrong. This marks the second phase of closure by Haggen. Earlier, Haggen announced the closure of 27 stores, which include two in Tucson. Its remaining Tucson store at West Speedway and Silverbell is ready for closure, in addition to three of its remaining stores in the Phoenix area.
Haggen said in court filings that no firm order is from any third party for these stores. Running these stores would result in $400,000 negative cash flow each day, reported the Seattle newspaper. As per the fillings, closure saves approximately $60 million for the rest of the year.
So as to stop burning cash, Haggen immediately looks for liquidating the locations. The chain plans keep a total of 37 stores in Washington and Oregon.
John Clougher, Chief Executive, said, “Although this has been a difficult process and experience, we will remain concentrated in the Pacific Northwest where we began.”
Haggen said in its news release that, “Employees will continue to receive their pay and benefits through the normal course of business as previously approved by the court.”
-Sumana
