Court approves Haggen’s plan for Nov. 9 auction of stores

A Delaware bankruptcy court on Monday, Oct. 19 approved Haggen’s plan to auction off the bulk of its stores in early November, in a process underpinned by tentative deals with two California supermarket chains.

Haggen agreed to sell 36 stores to Gelson’s Market and to Smart & Final in two so-called “stalking horse” deals, designed to set a baseline price for the auction.

The United Food and Commercial Workers International Union (UFCW) had objected to the plan last week, in part because Smart & Final, which operates no-frills warehouses in southern California, does not have a collective bargaining agreement with the union’s local affiliates. UFCW, which does not object to the deal struck with union-friendly Gelson’s, wanted more time to find other buyers for the 28 stores Smart & Final agreed to purchase.

Others, including potential landlords, also filed objections with the court.

But Bankruptcy Court Judge Kevin Gross ruled that there had been “good and sufficient notice” of the plan, and that the stalking horse deals represent the “highest or best offer” found by Haggen for these stores.

Bids for Haggen stores must be submitted by Nov. 2. The auction will take place on Nov. 9.

This story was originally published October 20, 2015 at 11:07 AM with the headline "Court approves Haggen’s plan for Nov. 9 auction of stores."