Court approves financing for Haggen grocery

Posted at 4:15 AM, Sep 11, 2015
and last updated 2015-09-11 07:15:15-04

Grocery chain Haggen has been granted the right to borrow up to $215 million, two days after it filed for Chapter 11 bankruptcy.

The Oregonian reports that documents filed in the U.S. District bankruptcy court in Delaware on Thursday show the court will allow the Bellingham, Washington-based Haggen to use the borrowed funds to operate its 164 store through its Oct. 5 bankruptcy hearing.

According to court documents, the struggling grocer owes its creditors more than $55 million.

Earlier this year, Haggen bought 146 Albertsons and Safeway stores, expanding from 18 stores in Oregon and Washington into new markets in California, Nevada and Arizona.