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Haggen Files Motion to Establish Bid Procedures for Ongoing Sale Process

05 October 2015  

Haggen receives bids on 36 stores.

Haggen has filed motions with the bankruptcy court which will allow it to set procedures and seek buyers for the stores and assets it plans to sell. Included in those motions are the global bidding procedures, stalking horse package bid procedures and a schedule of stores that are being sold.

What’s a “stalking horse” as far as bankruptcy court is concerned? According to, "The initial bidder with whom the debtor negotiates a purchase agreement is called the "stalking horse” bidder…”

This, in effect, establishes a minimum bid for the properties being sold.

The debtor then offers incentives to that initial bidder in the event that they are outbid by a higher offer on the properties. These incentives are to compensate the “stalking horse” bidder for the expenses associated with preparing the bid. “These incentives may include expense reimbursements, break-up fees, favorable bidding procedures, and exclusivity arrangements,” according to Jones Day. The incentives must be approved by the bankruptcy court.

Haggen has received bids on 36 stores in California and Nevada from two “stalking horse” bidders.

Locally, the Prescott Valley store has already closed, and the Prescott store is in the process of selling out and liquidating the store. According to employees at the Prescott store, the last day is set to be November 24. At this point, there are no announced bidders for these two locations or for any of the locations in Arizona.

Here is the press release sent out by Haggen:

Haggen Files Motion to Establish Bid Procedures for Ongoing Sale Process

Bellingham, Wash. (October 5, 2015) – Haggen today announced that it has filed motions with and is seeking the approval of the 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.

Haggen is seeking a court hearing on October 19, 2015 to hear the Company’s proposed global bid procedures. Parties interested in participating in the sale of stores need to submit an indication of interest by no later than October 26. The procedures provide for a deadline for submission of bids to purchase some or all of the assets on 5:00 p.m. ET on November 2, with an auction scheduled on November 9. The hearing to consider the results of the auction will be held on November 24. In the event no auction is conducted for a stalking horse package or if one of the stalking horse bidders is the 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 on November 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. The procedures will allow the sale auction(s) to be conducted in a controlled, fair and open fashion that will encourage participation of financially capable buyers.

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 8 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.

Stores included in the asset purchase agreement with:

Gelson’s Markets:

Carlsbad – El Camino Real Carlsbad
Del Mar – Via De La Valle, Del Mar
Ladera Ranch – Crown Valley Parkway Ladera Ranch
Laguna Beach – South Pacific Coast Hwy. Laguna Beach
La Jolla – Turquoise St San Diego
Rancho Mirage – Bob Hope Drive Rancho Mirage
Santa Monica – Lincoln Blvd Santa Monica
Thousand Oaks – Avenida De Los Arboles Thousand Oaks

Smart & Final LLC

Atascadero – El Camino Real Atascadero
Carpinteria – Linden Avenue Carpinteria
Chino Hills – Chino Hills Pkwy Chino Hills
Chula Vista – East H St Chula Vista
Corona Del Mar – Coast Highway Corona Del Mar
Coronado – B Ave Coronado
El Cajon – Camino Canada El Cajon
El Cajon – Fletcher Pkwy El Cajon
La Mesa – Avocado Avenue La Mesa
Newbury Park –Newbury Road Newbury Park
Palmdale – W Avenue N Palmdale
Paso Robles –Creston Road Paso Robles
Redondo Beach – N. Pacific Coast Hwy. Redondo Beach
San Diego – Tierra Santa Bl. San Diego
San Diego – Westview Pkwy San Diego
San Luis Obispo – Johnson Ave San Luis Obispo
San Pedro – W 25th St San Pedro
San Ysidro – W San Ysidro Blvd San Ysidro
Santa Barbara – State St. Santa Barbara
Santee – Magnolia Ave. Santee
Simi Valley – Los Angeles Avenue Simi Valley
Torrance – Hawthorne Blvd Torrance
Trabuco Canyon – Plano Trabuco Rd. Trabuco Canyon
Ventura – Telegraph Road Ventura
Westlake Village – Lindero Canyon Rd Westlake Village
Yorba Linda – Yorba Linda Blvd. Yorba Linda


Las Vegas – Village Center Circle Las Vegas

Lynne LaMaster

Lynne LaMaster is the Founder of the eNewsAZ Network of websites. She will be leaving for new adventures on May 15, 2020.