REGION— After four months in the Pacific Southwest region, Haggen Inc. has announced the company will be closing its stores, including two in Carlsbad.
The grocery chain attempted an ambitious expansion earlier this year by buying 146 Albertsons and Safeway stores.
The stores were up for sale because Federal Trade Commission ordered them to be sold as part of the merger between the two grocery giants.
According to analysts, the buyout could have cost Haggen $1.4 billion for the 146 Albertsons, Vons, Pavilions and Safeway grocery stores.
Previous to that buyout, Haggen operated 18 stores in Oregon and Washington.
The grocery chain filed for Chapter 11 bankruptcy protection earlier this month.
The chain will now focus around 37 stores in the northwest.
“Haggen has a long record of success in the Pacific Northwest and these identified stores will have the best prospect for ongoing excellence,” said John Clougher, Chief Executive Officer of Haggen Pacific Northwest.
“Although this has been a difficult process and experience, we will remain concentrated in the Pacific Northwest where we began, focusing on fresh Northwest products and continuing our support and involvement in the communities we serve,” he said.
Employees at the closing stores have received 60-day notices and the stores will remain open as usual.
Customers complained of high prices.
In total, 19 San Diego stores will be closing. The company did not announce the amount of affected employees.
Albertson’s will be able to hire back Haggen employees, which was a request made to the Federal Trade Commission since it was prohibited by an earlier FTC order.