Case 15-11874-KG Doc 644 Filed 11/06/15 Page 1 of 4 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: 1 HAGGEN HOLDINGS, LLC, et al., Debtors. ) ) ) ) ) ) ) Chapter 11 Case No. 15-11874 (KG) (Jointly Administered) Ref. Docket No. 494 NOTICE OF STORES TO BE INCLUDED IN GLOBAL AUCTION SCHEDULED FOR NOVEMBER 9, 10 AND 11, 2015, BASELINE BIDS AND QUALIFIED BIDDERS PLEASE TAKE NOTICE that on October 19, 2015, the United States Bankruptcy Court for the District of Delaware entered an order (the “Global Bidding Procedures Order”) [Docket No. 494] establishing certain procedures (the “Global Bidding Procedures”)2 that govern the sale and auction of all of the Debtors’ Stores. PLEASE TAKE FURTHER NOTICE that in accordance with the Global Bidding Procedures Order, the Debtors have scheduled a global auction (the “Global Auction”) at the Hyatt Regency Century Plaza, 2025 Avenue of the Stars, Los Angeles, CA 90067, on November 9, 2015 through and including November 11, 2015, beginning promptly at 9:15 a.m. (Pacific Time) on each day. A mandatory check-in for the Auction will begin at 8:30 a.m. (Pacific Time). PLEASE TAKE FURTHER NOTICE that attached hereto as Exhibit A is a list of the Stores organized by geographic area that the Debtors intend to auction at the Global Auction,3 which indicates the starting bid (the “Baseline Bid”) for each Store included in the Global Auction. In certain cases where no Qualified Bid was received for a Store, the Debtors have fixed the Baseline Bid at an amount to promote a spirited and robust auction and to expedite the auction for such Store. PLEASE TAKE FURTHER NOTICE that any Qualified Bidder may submit a bid on any Store in any Auction, including Stores for which the Qualified Bidder did not 1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, are: Haggen Holdings, LLC (7558), Haggen Operations Holdings, LLC (6341), Haggen Opco South, LLC (7257), Haggen Opco North, LLC (5028), Haggen Acquisition, LLC (7687), and Haggen, Inc. (4583). The mailing address for each of the Debtors is 2211 Rimland Drive, Bellingham, WA 98226. 2 Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Global Bidding Procedures Order or the Global Bidding Procedures, as applicable. 3 The Debtors reserve the right to remove any Store from the Global Auction and will announce any such change on the record at the Global Auction. 01:17941761.1 Case 15-11874-KG Doc 644 Filed 11/06/15 Page 2 of 4 previously submit a bid, subject to satisfying the deposit requirements set forth in the Global Bidding Procedures and herein.4 PLEASE TAKE FURTHER NOTICE that each Store will be individually auctioned (each, an “Auction”) and an anticipated order of Stores to be auctioned will be provided prior to or during the Global Auction. Generally, the Debtors intend to group Stores to be auctioned at the Global Auction based on the following geographic locations and in the following anticipated order: November 9, 2015 a. Arizona Market b. Anaheim, CA Market c. Los Angeles, CA Market d. Bakersfield/Riverside, CA Market November 10, 2015 a. Oxnard-Ventura, CA Market b. Santa Barbara, CA Market c. San Luis Obispo, CA Market d. San Diego, CA Market e. Las Vegas, NV Market November 11, 2015 a. Portland/Salem, OR Market b. Baker City/Eugene/Grants Pass/Klamath Falls/Medford, OR Stores c. Seattle, WA Market d. Aberdeen/Bremerton/Spokane, WA Stores e. Tacoma, WA Market The Debtors reserve the right to change the geographical order above and to auction Stores within a certain geographic area at a different date or time than other Stores included in that geographic area. Qualified Bidders are encouraged to attend the entire Global Auction to ensure that they will be able to bid on Stores in which they are interested as the foregoing is subject to material change at or before the Global Auction. PLEASE TAKE FURTHER NOTICE that to date, approximately 40 bidders have submitted bids for Stores that are currently included in the Global Auction. The Debtors have posted a list in the data room identifying all Qualified Bidders who, to date, have been qualified to participate in the Global Auction, subject, in some cases, to final documentation.5 The Debtors are continuing to work with bidders to qualify them to bid at the Global Auction. 4 Pursuant to Paragraph 12 of the Global Bidding Procedures Order, the Debtors have decided not to limit Qualified Bidders to bidding only on the Stores included in their respective Qualified Bids. 5 As provided by the Global Bidding Procedures Order, the Debtors may qualify bidders up to the Global Auction. Pursuant to Paragraph 12 of the Global Bidding Procedures Order, the Debtors have decided not to publicly file the list of Qualified Bidders prior to the Global Auction. The Debtors may publicly file such list at a later date. 01:17941761.1 2 Case 15-11874-KG Doc 644 Filed 11/06/15 Page 3 of 4 Qualified Bidders may bid on any Store at the Auction, subject to satisfying the applicable deposit requirements. Qualified Bidders are advised to make arrangements to increase their deposit amounts at or immediately after the Global Auction. PLEASE TAKE FURTHER NOTICE that attached hereto as Exhibit B is a Qualified Bidder Indication of Interest Form (the “Indication of Interest Form”) that requires each Qualified Bidder to identify the Stores (but not the price) that a Qualified Bidder currently intends, in good faith, to bid on. The Indication of Interest Form will assist the Debtors to organize the Global Auction. All Qualified Bidders must identify in the Indication of Interest Form the names of all representatives who will attend the Auction on behalf of such Qualified Bidder. Each Qualified Bidder will be limited to a maximum of four (4) representatives, including professionals. Qualified Bidders must complete and return the Indication of Interest Form to the Debtors by no later than November 8, 2015 at 11:00 a.m. (Pacific Time) to: (A) the Debtors, Haggen Holdings, LLC (Attn: Blake Barnett, Chief Financial Officer; blakeb@haggen.com); (B) co-counsel to the Debtors, Stroock & Stroock & Lavan LLP (Attn: Frank Merola, Esq. and Sayan Bhattacharyya, Esq.; fmerola@stroock.com and sbhattacharyya@stroock.com); (C) co-counsel to the Debtors, Young Conaway Stargatt & Taylor, LLP (Attn: Matthew Lunn, Esq. and Robert Poppiti, Jr., Esq.; mlunn@ycst.com and rpoppiti@ycst.com); and (D) financial advisor to the Debtors, Sagent Advisors LLC (Attn: Scott Moses and Gregory Grambling; smoses@sagentadvisors.com and 6 ggrambling@sagentadvisors.com) (collectively, the “Notice Parties”). In addition to the Debtors and the Consultation Parties, the identified representatives of Qualified Bidders and all creditors of the Debtors may attend the Global Auction. PLEASE TAKE FURTHER NOTICE that the Indication of Interest Form is not a binding commitment to bid on any Store (provided that to the extent a Qualified Bid has been submitted for such Store by a Qualified Bidder, in accordance with the Global Bidding Procedures Order, such Qualified Bid is a bidding obligation). The Debtors will not share a Qualified Bidder’s Indication of Interest Form (or its content) with any other Qualified Bidders. Qualified Bidders are not permitted to share their Indication of Interest Form (or its content) with any other Qualified Bidders without the consent of the Debtors. PLEASE TAKE FURTHER NOTICE that pursuant to 18 U.S.C. §§ 156 and 157, Qualified Bidders and their representatives may not communicate with one another, collude or otherwise coordinate for participating in, or otherwise for any purpose regarding, the Global 6 The Indication of Interest Form is also available in MS Word format in the Debtors’ data room. 01:17941761.1 3 Case 15-11874-KG Doc 644 Filed 11/06/15 Page 4 of 4 Auction without the express consent of the Debtors. Any party found to violate this requirement will be referred to the Office of the United States Trustee for the District of Delaware and the Office of the United States Attorney for the District of Delaware in accordance with applicable law. PLEASE TAKE FURTHER NOTICE that the Debtors intend to announce the auction rules (the “Auction Rules”) via email to all Qualified Bidders and the Consultation Parties on November 6, 2015. Pursuant to Paragraph 12 of the Global Bidding Procedures, the Auction Rules and other matters are subject to modification as necessary to garner the highest value for the Debtors’ estates and otherwise in fulfilling their fiduciary duties, and such rights remain reserved. PLEASE TAKE FURTHER NOTICE that if you have questions concerning the contents of this notice or the sale process, you should contact the representative of the Debtors with whom you have previously been in contact or the Notice Parties listed above. Dated: November 6, 2015 YOUNG CONAWAY STARGATT & TAYLOR, LLP /s/ Robert F. Poppiti, Jr Matthew B. Lunn (No. 4119) Robert F. Poppiti, Jr. (No. 5052) Ian J. Bambrick (No. 5455) Ashley E. Jacobs (No. 5635) Rodney Square, 1000 North King Street Wilmington, Delaware 19801 Telephone: (302) 571-6600 Facsimile: (302) 571-1256 -andSTROOCK & STROOCK & LAVAN LLP Frank A. Merola (admitted pro hac vice) Sayan Bhattacharyya (admitted pro hac vice) Elizabeth Taveras (admitted pro hac vice) 180 Maiden Lane New York, New York 10038 Telephone: (212) 806-5400 Facsimile: (212) 806-6006 Counsel to the Debtors and Debtors-In-Possession 01:17941761.1 4 Case 15-11874-KG Doc 644-1 Filed 11/06/15 Exhibit A Stores Included in Global Auction 01:17941761.1 Page 1 of 7 Case 15-11874-KG Doc 644-1 Filed 11/06/15 Page 2 of 7 Stores Included in Global Auction Haggen Store # 2217 2222 2197 2198 2220 2218 2223 2196 2219 2221 Lake Havasu City Flagstaff Tucson Tucson Tucson Prescott Prescott Phoenix Phoenix Phoenix 2173 Metro Area Address City State Zip Baseline Bidder Baseline Bid Albertson's LLC NA Albertson's LLC NA Albertson's LLC NA NA NA NA NA 1,000,000 No Reserve Price 1,000,000 No Reserve Price 700,000 No Reserve Price No Reserve Price No Reserve Price No Reserve Price No Reserve Price 1980 Mcculloch Blvd 1416 E Route 66 10380 East Broadway Boulevard 8740 East Broadway 1350 N Silverbell Road 174 East Sheldon 7450 E Highway 69 34442 N Scottsdale Road 11475 E Via Linda 3655 W. Anthem Way Lake Havasu City Flagstaff Tucson Tucson Tucson Prescott Prescott Valley Scottsdale Scottsdale Anthem AZ AZ AZ AZ AZ AZ AZ AZ AZ AZ 86403 86001 85748 85710 85745 86301 86314 85262 85259 85086 Anaheim 30252 Crown Valley Parkway Laguna Niguel CA 92677 2201 2202 2203 2215 2216 Anaheim Anaheim Anaheim Anaheim Anaheim 3901 Portola Pkwy 25872 Muirlands Blvd. 28751 Los Alisos Blvd. 17662 17th Street 550 E. First St. Irvine Mission Viejo Mission Viejo Tustin Tustin CA CA CA CA CA 92620 92691 92692 92780 92780 2136 Los Angeles 6240 Foothill Blvd Tujunga CA 91042 2160 Los Angeles 240 S. Diamond Bar Blvd Diamond Bar CA 91765 2167 Los Angeles 26518 Bouquet Canyon Road Saugus CA 91350 2159 Los Angeles 3830 W Verdugo Ave Burbank CA 91505 2161 2165 2169 Los Angeles Los Angeles Los Angeles 8985 Venice Bl - Ste B 2115 Artesia Bl. 23381 Mulholland Dr Los Angeles Redondo Beach Woodland Hills CA CA CA 90015 90278 91364 2174 Los Angeles 2130 Pacific Coast Hwy Lomita CA 90717 2179 2209 2213 Los Angeles Los Angeles Los Angeles 28090 South Western Ave 6235 E Spring St 27095 Mcbean Parkway San Pedro Long Beach Santa Clarita CA CA CA 2148 2140 2208 2175 2176 Bakersfield Bakersfield Bakersfield Riverside Riverside 3500 Panama Lane 7900 White Lane 8200 E Stockdale Hwy 72675 Highway 111 8850 Foothill Blvd. Bakersfield Bakersfield Bakersfield Palm Desert Rancho Cucamonga CA CA CA CA CA Smart & Final LLC (Additional Stores) NA NA NA Tustin Safe LLC Tawa, Inc. 2,085,000 No Reserve Price No Reserve Price No Reserve Price 100,000 100,000 90732 90808 91355 Albertson's LLC Smart & Final LLC (Additional Stores) Albertson's LLC Smart & Final LLC (Additional Stores) SFM, LLC (Sprouts) NA Regency Centers, L.P. Berberian Enterprises, Inc. (Jons Marketplace) Albertson's LLC NA NA 200,000 100,000 No Reserve Price No Reserve Price 93313 93311 93311 92260 91730 Albertson's LLC NA Albertson's LLC NA Albertson's LLC 300,000 No Reserve Price 200,000 No Reserve Price 100,000 185,000 200,000 2,750,000 1,925,000 1,059 500,000 500,000 Case 15-11874-KG 2180 Riverside 2153 2157 2199 2211 Doc 644-1 Filed 11/06/15 Page 3 of 7 1910 N. Campus Ave. Upland CA 91784 Albertson's LLC 1 Oxnard-Ventura Oxnard-Ventura Oxnard-Ventura Oxnard-Ventura 2400 Las Posas Rd 2800 Cochran 660 E. Los Angeles Ave 920 N. Ventura Rd. Camarillo Simi Valley Simi Valley Oxnard CA CA CA CA 93010 93065 93065 93030 Super A Foods, Inc. SFM, LLC (Sprouts) Stater Bros. Markets NA 500,000 1,000,000 1,200,000 No Reserve Price 2130 2146 2149 Santa Barbara Santa Barbara Santa Barbara 1500 N. 'H' Street 163 S. Turnpike Rd 175 N. Fairview Ave. Lompoc Goleta Goleta CA CA CA 93436 93111 93117 300,000 1,600,000 1,000,000 2150 Santa Barbara 2010 Cliff Dr. Santa Barbara CA 93109 Albertson's LLC Albertson's LLC SFM, LLC (Sprouts) SB Grocery, LLC (Roxy's Market) 2152 2155 2210 San Luis Obispo West 1132 Branch Street San Luis Obispo 771 Foothill Blvd San Luis Obispo 1130 Los Osos Valley Road Arroyo Grande San Luis Obispo Los Osos CA CA CA 93420 93405 93402 Spencer NA NA 250,000 32,557 No Reserve Price 600,000 No Reserve Price 75,000 2193 2194 San Diego San Diego 505 Telegraph Canyon Rd 870 Third Ave Chula Vista Chula Vista CA CA 91910 91911 2143 San Diego 2235 University Ave San Diego CA 92104 2141 2185 2186 2187 2188 2190 2191 San San San San San San San 1608 Broadway St 5630 Lake Murray Blvd 14837 Pomerado Road 12475 Rancho Bernardo Rd 7895 Highland Village Place 5950 Balboa Ave 671 Rancho Santa Fe El Cajon La Mesa Poway Rancho Bernardo San Diego San Diego San Marcos CA CA CA CA CA CA CA 92021 91942 92064 92128 92129 92111 92078 2204 San Diego 422 W Washington St San Diego CA 92103 2206 San Diego 14340 Penasquitos Drive San Diego CA 92129 Carnival Supermarket Inc. NA Smart & Final LLC (Additional Stores) Albertson's LLC Albertson's LLC RJS Investment Group Albertson's LLC Albertson's LLC Tawa, Inc. Albertson's LLC Good Food Holdings/Bristol Farms Vestar California XXI, L.L.C. 2228 2225 2230 2231 2233 2234 Las Las Las Las Las Las 2910 Bicentennial Parkway 1031 Nevada Hwy 575 College Drive 190 N. Boulder Hwy 7530 W. Lake Mead Blvd 820 S. Rampart Blvd. Henderson Boulder City Henderson Henderson Las Vegas Las Vegas NV NV NV NV NV NV 89009 89005 89015 89015 89128 89145 Albertson's LLC NA Albertson's LLC Albertson's LLC SFM, LLC (Sprouts) NA 200,000 No Reserve Price 1 100,000 1,950,000 No Reserve Price 8515 SW Tualatin-Sherwood Road 16200 S.W. Pacific Hwy. 14800 S E Sunnyside Rd 1855 Blankenship Rd 8155 S.W. Hall Tualatin Tigard Clackamas West Linn Beaverton OR OR OR OR OR 97062 97224 97015 97068 97005 NA NA NA NA Tawa, Inc. 64,203 No Reserve Price No Reserve Price No Reserve Price 50,000 61 2073 2079 2083 2085 Diego Diego Diego Diego Diego Diego Diego Vegas Vegas Vegas Vegas Vegas Vegas Portland Portland Portland Portland Portland 295,000 800,000 400,000 300,000 900,000 400,000 30,000 800,000 1,500,000 200,000 Case 15-11874-KG 2090 2092 2088 Portland Portland Salem 2084 2080 2082 2121 2114 2122 2095 Doc 644-1 Filed 11/06/15 Page 4 of 7 10830 S.E. Oak 16030 S W Tualatin Sherwood Rd 5450 River Rd. N. Milwaukie Sherwood Keizer OR OR OR 97202 97140 97303 Baker City Eugene Eugene Grants Pass Klamath Falls Klamath Falls Medford 1120 Campbell Street 3075 Hilyard St. 5415 Main Street 340 N E Beacon Drive 211 North Eighth Street 2740 S. 6th 585 Siskiyou Boulevard Baker City Eugene Springfield Grants Pass Klamath Falls Klamath Falls Ashland OR OR OR OR OR OR OR 97814 97405 97478 97526 97601 97603 97520 Albertson's Albertson's Albertson's NA NA NA Albertson's LLC LLC LLC 2091 2099 2116 2117 2119 2123 2125 2126 Seattle Seattle Seattle Seattle Seattle Seattle Seattle Seattle 19881 SR 2 12725 First Ave. S. 15840 1st Avenue South 31009 Pacific Hwy South 14215 SE Petrovitsky Rd 7601 Evergreen Way 4300ne 4th 15332 Aurora Ave N Monroe Burien Burien Federal Way Renton Everett Renton Shoreline WA WA WA WA WA WA WA WA 98272 98168 98148 98003 98058 98203 98059 98133 Albertson's Albertson's Albertson's NA Albertson's Albertson's Albertson's Albertson's LLC LLC LLC 75 2071 2097 2115 2069 Aberdeen Bremerton Bremerton Bremerton Spokane 1213 3355 2222 2900 1233 Aberdeen Port Orchard Silverdale Bremerton Liberty Lake WA WA WA WA WA 98520 98366 98383 98310 99019 2068 2070 2077 2078 2118 Tacoma Tacoma Tacoma Tacoma Tacoma Spanaway / Tacoma Gig Harbor Puyallup Tacoma Milton WA WA WA WA WA 98444 98335 98373 98408 98354 East Wishkah Bethel Rd. S.e. NW Bucklin Hill Road Wheaton Way N. Liberty Lake Road 15805 Pacific Ave. S. 4831 Point Fosdick Dr Nw 11012 Canyon Rd. East 111 S. 38Th Street 2800 Milton Way NA NA NA No Reserve Price No Reserve Price No Reserve Price LLC LLC LLC LLC LLC NA Albertson's LLC NA NA Yoke's Foods, Inc. Albertson's Albertson's Albertson's NA Albertson's LLC LLC LLC LLC 300,000 200,000 1 No Reserve Price No Reserve Price No Reserve Price 200,000 100,000 100,000 1 No Reserve Price 1 1,300,000 1,700,000 500,000 40,179 200,000 No Reserve Price No Reserve Price 1,500,000 1 500,000 1 No Reserve Price 1 Case 15-11874-KG Doc 644-1 Filed 11/06/15 Exhibit B Indication of Interest Form 01:17941761.1 Page 5 of 7 Case 15-11874-KG Doc 644-1 Filed 11/06/15 Page 6 of 7 Haggen Global Auction Qualified Bidder Indication of Interest Form All Qualified Bidders must complete each part of this Indication of Interest Form and return it by email to the following parties, by no later than November 8, 2015 at 11:00 a.m. (Pacific Time): (A) the Debtors, Haggen Holdings, LLC (Attn: Blake Barnett, Chief Financial Officer; blakeb@haggen.com); (B) co-counsel to the Debtors, Stroock & Stroock & Lavan LLP (Attn: Frank Merola, Esq. and Sayan Bhattacharyya, Esq.; fmerola@stroock.com and sbhattacharyya@stroock.com); (C) co-counsel to the Debtors, Young Conaway Stargatt & Taylor, LLP (Attn: Matthew Lunn, Esq. and Robert Poppiti, Jr., Esq.; mlunn@ycst.com and rpoppiti@ycst.com); and (D) financial advisor to the Debtors, Sagent Advisors LLC (Attn: Scott Moses and Gregory Grambling; smoses@sagentadvisors.com and ggrambling@sagentadvisors.com). Name of Qualified Bidder: ________________________________ Qualified Bidder’s representatives who will attend the Global Auction (no more than four (4) per Qualified Bidder, including professionals): First and Last Name Company/Firm Role (bidder, Email Address Phone Number financial advisor, counsel) 1. 2. 3. 4. [Qualified Bidder Indication of Interest Form Page 1 of 2] Case 15-11874-KG Doc 644-1 Filed 11/06/15 Page 7 of 7 Please identify in the following table each of the Debtors’ stores that you currently intend, in good faith, to bid on in the Haggen Global Auction. This list is for the Debtors’ logistical purposes only and constitutes neither an offer by the Debtors to sell these stores to you nor an offer by you to purchase these stores from the Debtors. All bids submitted in the Global Auction remain subject to the Global Bidding Procedures Order [Docket No. 494] and the Auction Rules. Store Number Address City 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. [Qualified Bidder Indication of Interest Form Page 2 of 2] State