Haggen Plans Broad Retreat From Costly Expansion, Filing Shows

Haggen plans to surrender most of the territory it acquired in its ambitious bid to become a West Coast grocery powerhouse, judging by financial projections it made in bankruptcy court that paint the Bellingham grocer shrinking to one-third of its current size by early November.

In a budget forecast filed in court, Haggen projects that weekly sales averaging $44.7 million in the next two months will fall by two thirds in mid-November.

Similarly, its expenses for grocery inventory are expected to see a similarly sharp drop-off, from $24.5 million in the week ending Oct. 9 to $8.6 million the following week. Payroll expenses are also projected to decrease sharply in late October.

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