Haggen bit off more than it could chew? Grocer to slice 27 stores

The Haggen grocery chain that took over numerous Albertsons and Vons stores earlier this year says it will close or sell 27 outlets, including four in Orange County and one in Los Angeles County.

By acquiring stores that were divested by Albertsons and Safeway, the owner of Vons, Haggen expanded from 18 stores with 16 pharmacies and about 2,000 employees in the Pacific Northwest to 164 stores and 106 pharmacies employing more than 10,000 people in Washington, Oregon, California, Nevada and Arizona.

Many industry analysts at the time questioned if the grocer bit off more than it could chew with the sudden expansion.

Two of the Orange County locations to be lost are in Tustin, on 17th Street and East First Street. The other two are in Irvine, on Portola Parkway, and Mission Viejo, on Los Alisos Boulevard.

The Los Angeles County location to be closed is in Santa Clarita on McBean Parkway.

Bellingham, Washington-based Haggen said it hadn’t been determined how many jobs would be affected, though it announced separately last month that about 700 employees would be laid off in Southern California, including at stores in San Diego and Ventura counties

Haggen officials said stores slated to be closed will continue operating for about two more months.

“Haggen’s goal going forward is to ensure a stable, healthy company that will benefit our customers, associates, vendors, creditors, stakeholders as well as the communities we serve,” said Bill Shaner, Haggen’s Pacific Southwest CEO. “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.”

The Haggen announcement said its original stores still are performing well.

— City News Service