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By Jules Rogers Grants Pass Daily Courier January 31. 2016 12:01AM Last Haggen store in Grants Pass to be auctioned The remaining Haggen grocery store in Grants Pass is going to auction Feb. 5 as part of the company's Chapter 11 bankruptcy. The store at 1690 Allen Creek Road is one of 32 "core stores" in Washington and Oregon the company had hoped to keep open after selling and closing 130 others across five states. However, in a court filing last week, Haggen sought permission to entertain bids for the final 32 stores. A small chain based in Bellingham, Wash., Haggen had obtained 146 stores from Albertsons after its 2014 merger with fellow grocery giant Safeway. The transfer was forced by the Federal Trade Commission to avoid an unfair market advantage in some communities. However, the enormous leap in size — from 18 stores to 164 stores — quickly proved to be too much for Haggen. In Grants Pass, Haggen reopened the former Albertsons at 340 N.E. Beacon Drive and the one at 1690 Allen Creek Road last April. Within months, dozens of the new stores, including the store on Beacon Drive, closed as Haggen struggled in vain to handle the expansion. In July, Albertsons sued Haggen for $41 million for breach of contract and fraud, claiming Haggen still owed $37 million for the inventory of the last 38 stores. Haggen counter-sued for $1 billion, claiming Albertsons falsely represented its commitment to seamlessly transition the stores into viable competitors and had coordinated efforts to eliminate Haggen as competition. Last week Albertsons agreed to pay Haggen $5.75 million to settle the suit. Haggen ended up selling all of its locations except the core stores. Albertsons bought back 33 of the stores. The auction Feb. 5 will include all Haggens not yet sold. A potential bidder includes Comvest, the private equity firm that owns Haggen. According to the store manager, the Allen Creek Road Haggen is likely to remain open after the Feb. 5 auction date. Depending on the bidders, it might soon be operating under a different name. The Beacon Drive store, meanwhile, remains shuttered. http://www.mailtribune.com/article/20160131/NEWS/160139977 © 2016 Copyright © 1995-2011 Crain Communications Inc. All Rights Reserved. Terms of Use Privacy Statement -->