6000 California Employees To Lose Their Jobs In Haggen Shutdown

(Thomas Dishaw) The grocery industry keeps taking hits. First A&P cuts 5,000 jobs, now Haggen a west coast operator pulls out of California leaving 6,000 workers high and dry after a botched Albertsons deal.  According to reports the small grocer (Haggen) was tricked it into buying hundreds of stores with false promises and then sabotaged its entry into new markets by unfair practices. Sounds like Haggen got tricked into buying 146 under performing Safeway and Albertson stores, which eventually forced them into bankruptcy. Now that’s a way to shut down your competition.

From NBC San Diego: Six thousand Haggen employees across California are poised to lose their jobs when store locations shutter, a union spokeswoman said Monday.

The United Food and Commercial Workers International (UFCW) issued a statement related to the grocery store chain’s announcement about closing 100 stores and departing from California.

It was the latest in bad news for Haggen, which filed for Chapter 11 bankruptcy protection earlier this month.

Union officials said employees were experiencing “untold frustration” with the bankruptcy process and officials are challenging Haggen’s decision to close the stores.

“In fact, there is no evidence that Haggen has conducted a real and organized sales process or taken good-faith steps to pursue buyers to operate these stores,” the union statement read.

Union officials said, however, they are pleased Haggen employees could potentially be hired back by Albertsons under a decision by the Federal Trade Commission.