Haggen Holdings wins court approval to hold auction for core stores

By Caroline Salls

Pittsburgh, Dec. 4 – Haggen Holdings LLC received court approval of the bidding procedures for the proposed sale of its most valuable store locations, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The company has begun to market the assets for sale to potential buyers, the motion indicated. The order requires the company to execute any agreement with a stalking horse bidder by Jan. 21.

If a stalking horse bidder is selected, the company will pay it a break-up fee not to exceed 2% of the stalking horse purchase price and any expense reimbursement not to exceed 1% of the stalking horse purchase price if it is not ultimately the high bidder for the assets.

The bid deadline is set for 5 p.m. ET on Jan. 29.

The auction will be held on Feb. 5, if necessary, and the sale hearing is scheduled for Feb. 17.

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

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