Four Haggen grocery stores are closing in the Tri-Counties, the company announced Aug. 14.
Two stores in Simi Valley, one in Newbury Park and another in Los Osos will close in 60 days. The stores will continue to operate in the meantime, according to the news release.
“Haggen’s goal going forward is to ensure a stable, healthy company that will benefit our customers, associates, vendors, creditors, stakeholders as well as the communities we serve,” Haggen CEO Bill Shaner said in a news release. “By making the tough choice to close and sell some stores, we will be able to invest in stores that have the potential to thrive under the Haggen banner.”
Brian Gabler, Simi Valley assistant city manager and director of economic development, told the Business Times he is disappointed by the Simi store closures but hopeful the property will get leased soon.
“I’m saddened to see the stores close and the effects it will have on employees there as well as the property owners. But I think the ability to lease these locations will be good and can happen quickly,” said Gabler, adding that he’s already talked to two prospective businesses.
The grocery store chain out of the Pacific Northwest recently took over 146 Albertsons and Safeway stores in California, Nevada and Arizona, 20 of which are in the Tri-Counties. It was a part of an antitrust deal between Albertsons and Safeway and the FTC that will allow the company’s $9.2 billion merger.
Haggen’s stores in the region have laid off employees and reduced their hours. Consumers are complaining that prices are too steep.
Albertson’s also sued Haggen over a multi-million dollar payment for inventory.
“Additional stores may be sold or closed in the future as part of Haggen’s business right-sizing plan,” the company wrote.
The grocer is closing 16 stores in California, five in Oregon and one in Washington, but the company has not determined how many jobs will be lost, the release stated.
Haggen confirmed to the Business Times that the stores at 660 E. Los Angeles Ave., 5135 E. Los Angeles Ave., 2100 Newbury Road and 1130 Los Osos Valley Road will close.