Haggen already closing
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Sprouts would be perfect next to OH. They'll need to add a large Asian section though, like the Ralph's Fresh Fare in Woodbury.
Haggen looked cheap but charges high.
I bet they did not have local distribution set up so they were buying from the suppliers that were supplying the albertsons/vons originally. However since they don't have volume of albertsons/vons to leverage for pricing negotiation, their pricing was way higher. So essentially they were offering the exact same item as before but with higher cost.
I doubt they were trucking down items from their vendors from WA. That would've cost way more.
That's probably why they are suiting Albertsons, for not assisting them in securing competitive pricing with vendors in the area outside of their existing distribution network.
Someone didn't think things thru before the acquisition. They deserve to fail. Unless they were really goatee into the deal by the majors to slow their merger to take place.
Farm Direct used to be Ralph's, before that it was Stater Bros.
Farm Direct has changed so many times... I think they are trying to be just an Asian market but that was a mistake ala Super Assi. In that University area, they need to keep the Middle Eastern interest.
irvinedreamer
New member
Any chance for Trader Joe's?
The Motor Court Company
Well-known member
I was at the Irvine Haggen the other day. It left me a good impression that the cashier and her helper were being positive despite the situation - not just being polite, they complimented to each other as they work together. good luck to the workers!
By the way I read Haggen is trying to work with Albertsons and FTC to lift the anti-poaching ban so Haggen workers can be hired back by Albertons. That's a pretty good gesture.
Haggen is also looking for a buyer....
By the way I read Haggen is trying to work with Albertsons and FTC to lift the anti-poaching ban so Haggen workers can be hired back by Albertons. That's a pretty good gesture.
Haggen is also looking for a buyer....
iacrenter
Well-known member
Looks like Haggens will be exiting the entire region.
What a waste of money and jobs. Bill Shanes, Regional CEO was fired after the bankruptcy announcement.
http://m.ocregister.com/articles/haggen-684474-albertsons-stores.html
http://www.latimes.com/business/la-fi-haggen-california-20150924-story.html
What a waste of money and jobs. Bill Shanes, Regional CEO was fired after the bankruptcy announcement.
http://m.ocregister.com/articles/haggen-684474-albertsons-stores.html
http://www.latimes.com/business/la-fi-haggen-california-20150924-story.html
timandjess
New member
When they switched to Haggen I figured it wouldn't have a lot of business. Price was similar to Pavillion, but didn't feel as upscale. There weren't enough organic items. It pales even when compared to the Fresh Fare in Woodbury.
I would love a Ralph's Fresh Fare in its place. Sprouts may fit nicely as well.
There are already 2 traders nearby so it probably won't work here.
I would love a Ralph's Fresh Fare in its place. Sprouts may fit nicely as well.
There are already 2 traders nearby so it probably won't work here.
I stopped by yesterday AM. Some pretty good deals on the stuff they had left. 80 to 90% off. Got some crunch ice cream bars for like 40 cents plus waffles for my kids were like 38 cents a box, graham crackers were similarly priced (which my kids love) and they had some solid cookies for deep discounts as well. Given the proximity to where I live, I sure hope they replace it with a new grocer. Like walking their with my kiddos.
No takers for the OH Haggen. Doesn't bode well for that location. Time for Stater Bros?
Gerson's, Smart & Final to buy 5 Haggen stores in O.C. with court's OK
Oct. 4, 2015 Updated 11:01 pm
BY HANNAH MADANS / STAFF WRITER
Northwest grocer Haggen, which filed for bankruptcy protection in September, has struck a deal with Gelson's Markets and Smart & Final to buy 36 of its stores, including five in Orange County, as the chain exits the region.
Haggen has filed motions for purchase agreements with Gelson?s Markets for eight California stores and Smart & Final for 28 stores in California and Nevada.
If the deal is approved, Gelson?s would buy the Haggen locations in Ladera Ranch and Laguna Beach. Smart & Final would buy the Trabuco Canyon, Corona del Mar and Yorba Linda stores.
Parties interested in other store sales need to submit an indication of interest by Oct. 26, Haggen said. Bids then need to be submitted by Nov. 2.
On Sept. 24 Haggen announced it would exit the region and refocus its operations around the company?s 37 ?core stores? in the Pacific Northwest.
The troubled Bellingham, Wash.-based grocery chain filed for Chapter 11 bankruptcy protection Sept. 8, just six months after debuting in the Southwest. The move was called one of the quickest collapses to hit the supermarket industry in decades.
?This is the fastest (failure) in modern supermarket history,? grocery strategist Burt P. Flickinger said in September. ?In all of retail, I haven?t seen anything like this.?
Haggen, with 11 stores in Orange County, asked the bankruptcy court to approve store-closing sales at more than 100 locations in California, Nevada and Arizona.
All employees will receive a 60-day notice of store and office closures. During the process, stores will remain open. The chain said it was working with Albertsons to ask the Federal Trade Commission to waive a restriction that makes it difficult for Albertsons to hire Haggen employees.
Haggen previously received $215 million in debtor-in-possession financing from its lenders to maintain operations during its sale process.
The road to expansion was tumultuous for Haggen, which acquired 146 stores in January when Albertsons and Vons divested 168 locations to satisfy federal regulators during a merger with Safeway.
In a deal grocery analysts valued at nearly $2 billion, the company grew from 18 stores to 164 in a matter of months. By early summer, Haggen had opened 83 locations in California.
Almost immediately, trouble erupted as customers balked at high prices and limited inventory. In July, as Haggen scrambled to lower prices, it began laying off six to 10 employees at each of its new stores.
The chain announced 27 stores would close, including four in Orange County, in an attempt to right-size itself.
Supermarket analysts said Haggen underestimated the steep competition in Southern California, a $44 billion market that includes endless food buying options ? from deep discounters like Wal-Mart to niche operators like Trader Joe?s and Costco.
Craig Rosenblum, a grocery analyst at Willard Bishop, said Haggen did not make proper pricing decisions, differentiate itself enough or have the correct organization in place to grow as rapidly as it attempted to.
?They underestimated a lot of things,? Rosenblum said. ?They underestimated the support they were supposed to get from Safeway and Albertsons as far as information on the stores, information on pricing and promotions.
?Southern California is extremely competitive. Haggen had to come in and be competitive. They needed competitive prices, but also to differentiate itself and make shoppers want to go there,? he added.
Cooperation between the grocery chains during the transition was mostly absent, based on lawsuits filed by both Albertsons and Haggen.
In July, Albertsons sued Haggen for more than $41 million it claimed Haggen owed for inventory that changed hands during store conversions.
Haggen in August turned around and sued Albertsons? parent company for $1 billion, alleging the chain undercut its effort to transition Albertsons and Vons stores in the region.
The complaint filed contends Albertsons participated in ?coordinated and systematic efforts to eliminate competition? and ?made false representations to both Haggen and the FTC about Albertsons? commitment to a seamless transformation of the stores into viable competitors under the Haggen banner.?
The bankruptcy filing also showed Haggen owes money to many creditors, including $14.8 million to United Grocers and almost $5 million in deferred compensation to former Chief Executive Dale Henley. Haggen also owes money to Pepsi-Cola, Coca-Cola and other vendors. The filing also shows Haggen owes an undetermined amount to Albertsons.
Rosenblum doesn?t think Aldi or Grocery Outlet, two new discount supermarkets coming to Orange County this year and next, would face the same issues as Haggen.
?Aldi is already a national grocer with a successful market plan,? he said. ?Grocery Outlets? model is a great model. It?s more of a club, low-cost provider. I don?t see either of them having the same issues as Haggen or what they?re doing being even remotely parallel to what Haggen attempted to do.?
Staff writer Nancy Luna contributed to this report.
Gerson's, Smart & Final to buy 5 Haggen stores in O.C. with court's OK
Oct. 4, 2015 Updated 11:01 pm
BY HANNAH MADANS / STAFF WRITER
Northwest grocer Haggen, which filed for bankruptcy protection in September, has struck a deal with Gelson's Markets and Smart & Final to buy 36 of its stores, including five in Orange County, as the chain exits the region.
Haggen has filed motions for purchase agreements with Gelson?s Markets for eight California stores and Smart & Final for 28 stores in California and Nevada.
If the deal is approved, Gelson?s would buy the Haggen locations in Ladera Ranch and Laguna Beach. Smart & Final would buy the Trabuco Canyon, Corona del Mar and Yorba Linda stores.
Parties interested in other store sales need to submit an indication of interest by Oct. 26, Haggen said. Bids then need to be submitted by Nov. 2.
On Sept. 24 Haggen announced it would exit the region and refocus its operations around the company?s 37 ?core stores? in the Pacific Northwest.
The troubled Bellingham, Wash.-based grocery chain filed for Chapter 11 bankruptcy protection Sept. 8, just six months after debuting in the Southwest. The move was called one of the quickest collapses to hit the supermarket industry in decades.
?This is the fastest (failure) in modern supermarket history,? grocery strategist Burt P. Flickinger said in September. ?In all of retail, I haven?t seen anything like this.?
Haggen, with 11 stores in Orange County, asked the bankruptcy court to approve store-closing sales at more than 100 locations in California, Nevada and Arizona.
All employees will receive a 60-day notice of store and office closures. During the process, stores will remain open. The chain said it was working with Albertsons to ask the Federal Trade Commission to waive a restriction that makes it difficult for Albertsons to hire Haggen employees.
Haggen previously received $215 million in debtor-in-possession financing from its lenders to maintain operations during its sale process.
The road to expansion was tumultuous for Haggen, which acquired 146 stores in January when Albertsons and Vons divested 168 locations to satisfy federal regulators during a merger with Safeway.
In a deal grocery analysts valued at nearly $2 billion, the company grew from 18 stores to 164 in a matter of months. By early summer, Haggen had opened 83 locations in California.
Almost immediately, trouble erupted as customers balked at high prices and limited inventory. In July, as Haggen scrambled to lower prices, it began laying off six to 10 employees at each of its new stores.
The chain announced 27 stores would close, including four in Orange County, in an attempt to right-size itself.
Supermarket analysts said Haggen underestimated the steep competition in Southern California, a $44 billion market that includes endless food buying options ? from deep discounters like Wal-Mart to niche operators like Trader Joe?s and Costco.
Craig Rosenblum, a grocery analyst at Willard Bishop, said Haggen did not make proper pricing decisions, differentiate itself enough or have the correct organization in place to grow as rapidly as it attempted to.
?They underestimated a lot of things,? Rosenblum said. ?They underestimated the support they were supposed to get from Safeway and Albertsons as far as information on the stores, information on pricing and promotions.
?Southern California is extremely competitive. Haggen had to come in and be competitive. They needed competitive prices, but also to differentiate itself and make shoppers want to go there,? he added.
Cooperation between the grocery chains during the transition was mostly absent, based on lawsuits filed by both Albertsons and Haggen.
In July, Albertsons sued Haggen for more than $41 million it claimed Haggen owed for inventory that changed hands during store conversions.
Haggen in August turned around and sued Albertsons? parent company for $1 billion, alleging the chain undercut its effort to transition Albertsons and Vons stores in the region.
The complaint filed contends Albertsons participated in ?coordinated and systematic efforts to eliminate competition? and ?made false representations to both Haggen and the FTC about Albertsons? commitment to a seamless transformation of the stores into viable competitors under the Haggen banner.?
The bankruptcy filing also showed Haggen owes money to many creditors, including $14.8 million to United Grocers and almost $5 million in deferred compensation to former Chief Executive Dale Henley. Haggen also owes money to Pepsi-Cola, Coca-Cola and other vendors. The filing also shows Haggen owes an undetermined amount to Albertsons.
Rosenblum doesn?t think Aldi or Grocery Outlet, two new discount supermarkets coming to Orange County this year and next, would face the same issues as Haggen.
?Aldi is already a national grocer with a successful market plan,? he said. ?Grocery Outlets? model is a great model. It?s more of a club, low-cost provider. I don?t see either of them having the same issues as Haggen or what they?re doing being even remotely parallel to what Haggen attempted to do.?
Staff writer Nancy Luna contributed to this report.
Haggen was a rip, but it is amazing to me that people have a different perception of price when they are in a whole foods. So much of what they sell, you can buy at a normal grocer for less. Haggen totally missed the market but if they were marketed like whole foods, people would have a different perception.
By the way, I give whole foods credit, they have a lot of options and some good quality products, but good lord I'm way too cheap. I can get organic meats for far less.
By the way, I give whole foods credit, they have a lot of options and some good quality products, but good lord I'm way too cheap. I can get organic meats for far less.
timandjess
New member
AW said:
Sprouts would be perfect next to OH. They'll need to add a large Asian section though, like the Ralph's Fresh Fare in Woodbury.
Haggen looked cheap but charges high.
I bet they did not have local distribution set up so they were buying from the suppliers that were supplying the albertsons/vons originally. However since they don't have volume of albertsons/vons to leverage for pricing negotiation, their pricing was way higher. So essentially they were offering the exact same item as before but with higher cost.
I doubt they were trucking down items from their vendors from WA. That would've cost way more.
That's probably why they are suiting Albertsons, for not assisting them in securing competitive pricing with vendors in the area outside of their existing distribution network.
Someone didn't think things thru before the acquisition. They deserve to fail. Unless they were really goatee into the deal by the majors to slow their merger to take place.
Ready2Downsize
Well-known member
Orchard Hills Center is an Irvine Company property. I doubt an Asian market will pony up for the lease that Irvine Company will want.
irvinehomeowner
Well-known member
Yes, that is a TIC center.abcd1234 said:
Farm Direct used to be Ralph's, before that it was Stater Bros.
Farm Direct has changed so many times... I think they are trying to be just an Asian market but that was a mistake ala Super Assi. In that University area, they need to keep the Middle Eastern interest.
The old haggen location is way too big to be a Sprouts, plus their is a sprouts at the Marketplace. I can't see a company the size of Sprouts going in their. Just doesn't make sense with another location so close. That said, of all the stores that could go in their, I'd be happiest with a Sprouts. I pretty much either shop their or costco. Sprouts prices are very good and the quality has always seemed good. Problem is you could probably fit 3-4 sprouts in the Haggen. It has to be a Ralph's which gets a sweet deal from TIC (who knows the center is even more hopeless without an anchor grocery store) and preferential treatment for the shopping center that goes by Eastwood (or some other shopping center).