The small grocery-store chain Haggen has filed for bankruptcy.

 

The Bellingham Herald reports that Chief Executive John Clougher said the reorganization will allow the Bellingham-based Haggen to continue to operate while enabling the grocer to "re-align" its operations.

 

Creditors have committed up to $215 million to keep the company running while it sells stores.

 

The struggling grocer, which went from a family business to a West Coast power virtually overnight after buying 146 stores from Albertsons, released a statement saying it would focus on profitable core stores while in talks to sell many of the company's remaining assets.

 

Earlier this month Haggen sued Albertsons for more than $1 billion in damages, alleging the supermarket giant engaged in systematic efforts to eliminate it as a viable competitor in five states.

 

The lawsuit, filed in federal court in Delaware, accused Albertsons of anti-competitive practices.