REGION — Shortly after Haggen Inc. disclosed it was closing more than 100 grocery stores, the company announced Tuesday in a press release it has filed motions seeking the approval of a bankruptcy court to establish procedures for ongoing sales.
The motions present global bidding procedures, stalking horse package bid procedures and a schedule of stores being sold.
Of those Gelson’s Markets stores included are one in Carlsbad on El Camino Real and the Del Mar location on Via De La Valle. In total, eight Gelson’s Markets and 26 Smart & Final stores in California including one in Carlsbad and one in Las Vegas are up for sale.
Haggen purchased 146 Albertsons and Safeway stores earlier this year.
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 is seeking a court hearing on Oct. 19, 2015, to hear the company’s proposal. Parties interested in participating in the sale of stores need to submit an indication of interest by no later than Oct. 26.
The procedures provide for a deadline for submission of bids to purchase some or all of the assets by 2 p.m. PST Nov. 2, with an auction scheduled Nov. 9. The hearing to consider the results of the auction will be held Nov. 24.
In the event no auction is conducted for a stalking horse package or if one of the stalking horse bidders is successful bidder for its package after the auction and the contracts identified in the original bid have not changed, a sale hearing for those stores will be held Nov. 13 instead. All dates are tentative and subject to bankruptcy court approval.
Haggen previously requested approval to begin going out of business sales in the identified non-core locations and will exit operations during the last weeks of November. The sale process has been designed to be fair and transparent in order to derive the highest bid for the stores and to maximize value for the estate and creditors in an orderly process.
Haggen also filed motions to approve two separate asset purchase agreements for stalking horse bidder packages. Gelson’s Markets signed an asset purchase agreement for eight stores in California and Smart & Final LLC signed an agreement for 28 stores in California and Nevada. Both agreements are subject to bankruptcy court approval.
Sagent Advisors, LLC has been retained to coordinate the sale process for Haggen. Parties interested in learning more about the process can contact Sagent at (212) 904-9400.