Haggen receives interim approval to proceed with store-closing sales

By Mark Reccek

Bethlehem, Pa., Sept. 24 – Haggen Holdings LLC received interim court approval to continue to conduct store-closing sales, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Haggen said it intends to reorganize around, or sell as a going concern, its core stores for the benefit of its creditors.

Unlike the core stores, the company said many of the recently acquired stores are unprofitable and represent a negative cash drain on the debtors’ business.

“The conduct of the store-closing sales will provide an efficient means for the operating debtors to maximize recoveries of their estates with respect to the merchandise and/or the FF&E [furniture, fixtures and equipment],” the order said.

A final hearing is scheduled for Oct. 5.

Haggen, a Bellingham, Wash.-based supermarket company, filed bankruptcy on Sept. 8. The Chapter 11 case number is 15-11874.

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