Haggen files for bankruptcy

Haggen, the supermarket chain that has struggled in California since it opened its first stores here earlier this year, has filed for bankruptcy.

The company filed for Chapter 11 protection Tuesday in the U.S. Bankruptcy Court for the District of Delaware, according to a company statement.

Haggen officials did not say how many employees will be affected by the filing, but said it was seeking court approval that will allow it to continue its day-to-day operations, including paying wages and some benefits to its employees and honoring certain customer programs.

“The company [has] concluded that a reorganization through the Chapter 11 process is the best way for Haggen to preserve value for all stakeholders,” said John Clougher, the company’s chief executive officer, in the statement. “The action … will allow us to continue to serve our customers and communities while providing Haggen with a process to realign our operations and be positioned for the future.”

The Bellingham, Wash.-based chain generated some buzz last December when it purchased 146 Albertsons and Safeway stores, including 83 sites in California. Earlier this year, it converted those stores to the Haggen brand, but the chain has failed to catch on with consumers.

Last week, Haggen sued Albertsons in U.S. District Court for more than $1 billion in damages. The suit alleges that Albertsons tried to eliminate competition, and Haggen as a viable competitor, in more than 130 local grocery markets in five states.

Haggen currently operates six stores in the Inland Empire, according to the company’s website.