Haggen to close, liquidate 100 more stores

[klkla]

If they have any proof that Comvest is an investor in or benefited directly from the two Real Estate companies that bought the stores it would be very serious and they could be liable both from a civil and criminal standpoint.

If the complaint is only that they sold the real estate to raise capital to help with the liquidity of the company, and that decision turned out to be poor judgement, tough luck. That's what the bankruptcy process is for.

[storewanderer]

I have wondered about this real estate situation too. How does this impact Albertsons/Safeway for instance when they take over a store that they are now leasing vs. previously owning that store before? I wonder how that will impact the financials of the stores in question.

It did appear the real estate sales happened awfully quickly... that seemed a little suspicious to me.

[klkla]

I have wondered about this real estate situation too. How does this impact Albertsons/Safeway for instance when they take over a store that they are now leasing vs. previously owning that store before? I wonder how that will impact the financials of the stores in question.

It did appear the real estate sales happened awfully quickly... that seemed a little suspicious to me.

It's a pretty standard tactic. The odds were against Haggen ever being able to pull off this deal. The one thing they had going for them was the real property owned by the company. They could sell the property to outsiders to raise cash and negotiate an advantageous lease for keeping the store opened (a simple sale/leaseback transaction).

But the problem was that their business plan was so week that they burned through that cash from the property sales too quickly and the entire operation imploded.

Albertsons's/Safeway will be rental tenants on those properties going forward.