The much-troubled Washington State grocery chain, Haggen, announced Tuesday that it has voluntary filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Delaware. The action comes just a week after Haggen sued Albertsons for $1 billion , alleging that Albertsons’s bad-faith business practices led to Haggen’s failure to thrive after purchasing 146 Albertsons and Safeway stores earlier this year.
In a press release, Haggen said it had already received $215 million in debtor-in-possession financing, which will allow existing Haggen locations to operate as the company prepares to sell more stores in addition to the 26 sold in August.
In a prepared statement, Haggen CEO John Clougher said the carefully considered action “will allow us to continue to serve our customers and communities while providing Haggen with a process to re-align our operations to be positioned for the future.”