West Coast regional grocery chain Haggen announced that it will be closing down 27 stores in the next 60 days as part of its “right-sizing strategy.” Five stores are scheduled for closure in Arizona, 16 in California, five in Oregon and one in Washington.
The news came after Haggen’s rapid expansion this year in which the company bought 146 stores that regulators required to be sold after Albertsons and Safeways merged. In a statement, the grocer said most of the stores that were due for closure were those that had been acquired from the merger. The company further said that it could close or sell more stores later on.
“By making the tough choice to close and sell some stores, we will be able to invest in stores that have the potential to thrive under the Haggen banner,” commented Bill Shaner, the CEO of Haggen Pacific Southwest.
The Seattle Times reported that last month, Haggen began cutting worker hours in the Seattle area and undertook hundreds of layoffs and work-hour reductions in California, Arizona and Nevada.
The company was also sued for $41.1 million by Albertsons, which alleged that the company didn’t pay for part of the inventory that came with the stores, The Seattle Times said. Haggen officials say the lawsuit came in response to its own allegations that Albertsons violated the purchase agreement for the stores.
They did not yet reveal the number of people who will lose their jobs due to the company’s streamlining efforts. However, Shaner, CEO of Haggen said,
“Looking ahead, we will work hard every single day to earn the trust and business of our guests. We will continue to support community events and donate to schools. We will offer our customers the freshest and most local products we can find and the genuine service they deserve. And we will engage in lively discussions about how we can improve. We will remain actively involved in making our communities even better, and we will stay committed to the values that have always guided Haggen.”