Haggen closing all of its California locations

Haggen Inc. is leaving California after a dramatic expansion gone wrong forced the grocery chain to file for bankruptcy protection this month.

The Bellingham, Wash., company said Thursday it’s leaving the state as part of a larger exit of its Pacific Southwest holdings, including in Arizona and Nevada, Los Angeles Times reported.

The move will affect 127 stores, with 83 in California, mostly in the south.

Haggens had purchased and converted the old Vons store in Palm Desert along Highway 111 and what was once a Pavilions store on Bob Hope Drive in Rancho Mirage in December 2014.

Local shop owners who have businesses that share parking lots with Haggen supermarkets are worried they will lose business if the locations stay closed for too long.

“I think it would effect us because sometimes they will come over here and they will say I’m going to go get something in the store and they will come back,” said Cesar Delgado with Classic Cleaners in Rancho Mirage.

“I think all the tenants worry, we have all the traffic we have the customers and convenient shopping for the grocery store,” said Jeanie Choi owner Super White Cleaners in Palm Desert.

Haggen plans to keep 37 stores in Washington and Oregon, which is its home base.

Haggen has been struggling since paying what analysts estimated was more than $1.4 billion for 146 Albertsons, Vons, Pavilions and Safeway grocery stores.

Albertsons and Safeway were ordered by federal regulators to divest those locations last year as part of their merger.

As one super market chain goes out another is moving in. ALDI supermarkets is adding a few locations in our area and they are hiring.