Haggen primary supplier terminates product supply and services deal

By Caroline Salls

Pittsburgh, Sept. 17 – Haggen Holdings, LLC primary California supplier Unified Grocers, Inc. said it terminated its product supply and services agreement with Haggen on Sept. 8, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Unified Grocers said it is analyzing the impact of Haggen’s bankruptcy filings on its relationship with Haggen, and it is in the process of discontinuing providing business services to Haggen.

Although Unified Grocers said it expects to continue to supply Haggen with product during the bankruptcy process, the company said it cannot currently determine the number of stores that may be supplied or the duration of any supply arrangement.

At its peak, Unified Grocers said its average weekly product shipments to Haggen reached about $12 million. The company’s average weekly product shipment to Haggen over the preceding four weeks has been $8.6 million.

Unified Grocers said it had started to reduce its potential exposure before Haggen’s bankruptcy filing, including arrangement for payment in advance for product supplied to Haggen and reducing the amount of inventory the company was carrying specifically for Haggen.

The company said it currently cannot determine what portion, if any, of the receivables payable by Haggen will be paid.

Haggen, a Bellingham, Wash.-based supermarket company, filed bankruptcy on Sept. 8 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 15-11874.

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