Creditors Sue Former Haggen Owner Over ‘Convoluted Machiavellian Scheme’

In a "case of corporate opportunism and greed run amok," Haggen's creditors have filed a lawsuit against the bankrupt grocer's former owner, private equity firm Comvest.

The creditors allege that Haggen's acquisition of the 146 Albertsons stores last year, funded by Comvest, was part of a plan to secretly siphon away valuable real estate holdings, enriching Comvest while ensuring that creditors couldn't touch them in bankruptcy court proceedings.

The suit, filed in U.S. Bankruptcy Court in Delaware earlier this month and first reported by The Bellingham Herald, alleges that Comvest transferred Haggen's most profitable real estate holdings – worth more than $100 million – to a subsidiary that was not listed as a debtor in the Haggen bankruptcy case.

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