BELLINGHAM, Wash. — After a massive expansion a popular grocery chain based in Bellingham is filing for bankruptcy and closing stores.
Customers at the Haggen flagship store in Bellingham we talked to Wednesday say the local grocery feels like home. Karen Victor is even on a first-name basis with some of the employees.
"We've kind of talked to each other over the last 20 years or so," she tells us.
But her little, hometown grocery grew--suddenly--and by a lot. Bellingham-based Haggen expanded across Washington, Oregon, California, Nevada and Arizona, going from 18 locations to 164 and a whole host of new jobs. That was just announced last winter when Haggen acquired some Albertsons and Safeways that had to be off-loaded when those two companies merged.
Now less than a year later there have been layoffs and two dozen store closures, including one here in Washington.
"I did hear they bought all those Albertsons and thought 'wow that's a lot of stores they're buying,' so I didn't know if they were getting too big for their britches," says customer Jessica Rogers.
According to the bankruptcy documents Haggen owes workers $10 million and a former CEO nearly $5 million. When we asked for comment from their current CEO we were told there would be no interviews at their headquarters Wednesday.
Customers like Karen, who have made Haggen part of their daily routine admit the store is pricey.
"Certain things are cheaper at other stores but I am always happier when I shop at Haggen because it's nicer,” agrees Jessica.
Quality--that's one reason why the CEO told us last December he was confident the expansion would be a success.
"We're going to continue to offer--the team we have here--a great, northwest fresh experience," John Clougher said.
Haggen is also in the middle of two lawsuits — the company filed one last week for $1 billion claiming Albertsons tried to sabotage them by mislabeling products at the stores they bought. Back in July Albertsons sued Haggen for fraud.
KIRO
