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Haggen doesn't find bidders for Tigard, Tualatin, Sherwood locations

Haggen supermarkts in Tigard, Sherwood and Tualatin were auctioned off last week, but with no bidders coming forward, the stores are expected to close for good by the end of the year.Three of Haggen Food & Pharmacy's locations in Tigard, Tualatin and Sherwood will close, after no bidders came forward during an auction of the company's stores last week.

The supermarket chain auctioned off several of its Oregon stores this week, includings its shuttered Tualatin location, and its Sherwood store and one of its two Tigard stores, in the hopes of finding buyers to take control of more than 90 shuttering stores across the western United States.

According to Haggen spokeswoman Deborah Pleva, five Oregon stores were auctioned off to private bidders on Friday morning, including the Beaverton location on Hall Boulevard, as well as stores in Baker City, Eugene, Springfield and Ashland.

The Beaverton store was purchased for $50,000 by Tawa Supermarket, a California company that operates the Asian grocery store chain 99 Ranch Market.

The Hall Boulevard location will be the first 99 Ranch Market in Oregon.

The other Oregon stores were auctioned back to Albertsons, which sold the stores to Haggen last year.

Local Haggen stores

Tigard

• 16200 S.W. Pacific Highway. Closing Nov. 30.

• 14300 S.W. Barrows Road. Expected to stay open as Haggen

Tualatin

• 8515 S.W. Tualatin-Sherwood Road. Closed

Sherwood

• 16030 S.W. Tualatin-Sherwood Road. Closing Dec. 8

Beaverton

• 8155 S.W. Hall Blvd. Re-opening as 99 Ranch Market

Barrows Road Haggen also on auction block

Without bidders for its Tigard-area stores, those stores are expected to shut down, but Pleva said that the company will continue to look for buyers.

The last day for the Tigard store is Nov. 30. The Sherwood location is expected to close Dec. 8.

The company’s second Tigard location, 14300 S.W. Barrows Road, was slated to stay open. The store is performing well, Pleva said, and is considered by Haggen to be one of its “core stores.”

But the fate of those stores is also up in the air. The company filed court documents last week saying it would auction off its core stores on Jan. 8.

Pleva said that the Tigard location, and other core stores, are expected to stay in Haggen’s hands.

“As part of the restructuring process, Haggen was required to explore potential outside opportunities for all of its operations, including the Core Stores which are performing well.” Pleva said. “The bid procedures filed today comply with those terms. Despite the filing, Haggen does not anticipate any changes to continuing operations at the Core Stores including regular payments to suppliers and partners.”

Albertsons buys back lost stores

TIMES FILE PHOTO - The Tualatin Haggen supermarket closed earlier this year. Two other stores in Tigard and Sherwood are expected to close by the end of the year.

Haggen exploded onto the Portland scene, opening 10 stores earlier this year as part of a 146-store buyout during the Albertsons-Safeway merger. The Federal Trade Commission ordered the two supermarket giants to sell off stores as part of its merger, which Haggen acquired.

But the rollout was far from smooth. Albertsons sued Haggen for more than $36 million, saying the grocer failed to pay for 38 stores. Haggen filed a $1 billion countersuit, and announced it would close several stores, including its long running Tualatin location, which closed earlier this year.

In September, the company filed for Chapter 11 bankruptcy in September.

All told, the company auctioned off 91 stores at last week's auction. Albertsons, the former owner of many of those stores, bought back 33 of them, including the four Oregon locations in Baker City, Eugene, Springfield and Ashland.

How Albertsons was able to purchase back its own stores is unclear. Haggen directed all questions about Albertson's involvement to the FTC, which also declined to comment, citing Albertson and Haggen's pending litigation.

According to the FTC's order to Albertsons as part of its merger with Safeway, the supermarket chain is not allows to "acquire any ownership or leasehold interest in any facility that has operated as a supermarket within six months prior to the date of such proposed acquisition."

Albertsons did respond a request for comment.


By Geoff Pursinger
Reporter
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