More Haggen Store Sales Approved

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Encino’s Gelson’s Markets and Smart & Final Stores have been approved to expand in Los Angeles. Gelson’s executives announced Monday that the company won final approval to buy two additional stores – one each in Laguna Beach and Carlsbad – that were formerly owned by bankrupt grocer Haggen. It earlier got six stores.

Representatives of Commerce’s Smart & Final Stores also said Monday that company has been approved to get nine stores in addition to the 23 earlier granted. Eight of the stores are in Los Angeles County. They include locations in Westlake Village, Palmdale, Burbank, Torrance, San Pedro, Diamond Bar and two stores in Redondo Beach.

Smart & Final is paying about $68 million in cash to take over the stores, according to company officials.

“All 32 stores will be converted to the Extra! format which includes fresh produce, an expanded natural and organic product line and larger frozen, deli and meat selections along with both warehouse club quantities and more convenient sizes, “ said Smart & Final’s director of communications, Marisol Marks.

Earlier this month, Gelson’s won approval to buy six Haggen stores in Southern California, including a location at 2627 Lincoln Blvd. in Santa Monica.

“We’re very excited to be able to bring the Gelson’s experience to Santa Monica,” Gelson’s Chief Executive Rob McDougall said. “The most visible product changes are in our perishable departments. For instance, we have in-store chefs that prepare gourmet salads throughout the day. The fresh selections from our service deli are a big part of our reputation.”

There are also plans for a salad bar, a hot food station and an emphasis on locally-grown produce, according to McDougall.

Gelson’s now has all eight Haggen stores it had sought as part of the bankruptcy proceedings. The grocer will not disclose the terms of the agreements, but earlier court documents priced the bid for all eight stores at $36 million.

In addition to the new acquisitions, Gelson’s plans to open a store in Manhattan Beach at Sepulveda Boulevard and Eighth Street, McDougall said.

The stores were divvied up as a result of an ill-fated expansion by Haggen Food & Pharmacy.

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