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Haggen now in bankruptcy, blames Albertsons again

BY Mike Troy

NEW YORK — A week after suing Albertsons for $1 billion, west coast regional grocer Haggen has filed Chapter 11 and continues to cite Albertsons as the source of its difficulties.

Haggen said the bankruptcy filing was necessary in order to reorganize around its core profitable stores. The company said it has received commitments for up to $215 million in debtor-in-possession (DIP) financing from its existing lenders to maintain operations and the flow of merchandise to its stores while it sells some of its store locations. The company said it has engaged Sagent Advisors to market for sale an unspecified number of store locations in the five states it operates and to explore market interest for various store locations. Discussions are underway with interested parties to sell many of the company’s remaining assets, according to a Haggen statement.

“After careful consideration of all alternatives, the company concluded that a reorganization through the Chapter 11 process is the best way for Haggen to preserve value for all stakeholders,” said John Clougher, Haggen’s CEO. “The action we are taking today will allow us to continue to serve our customers and communities while providing Haggen with a process to re-align our operations to be positioned for the future.”

The filing comes roughly a week after Haggen files suit against Albertsons relating to a deal which allowed it to grow from an 18 store regional grocer to 164 stores through the purchase of Albertson’s locations in December 2014. The associated conversion process of the stores made Albertsons cooperation and good faith implementation of the terms of the deal in the Asset Purchase Agreement essential, according to Haggen. That did not occur, as detailed in Haggen’s lawsuit, details of which are available here.

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Rite Aid dedicates $1.3 million to Folds of Honor

BY Michael Johnsen

CAMP HILL, Pa. — During the month of September, Rite Aid associates nationwide will honor 274 students who have been named recipients of Folds of Honor educational scholarships provided by the Rite Aid Foundation’s KidCents program. The $1.3 million donation to Folds of Honor, a nonprofit organization based in Owasso, Okla., dedicated to providing educational scholarships to children of fallen or disabled veterans, was first announced in May during the nonprofit’s annual Patriot Cup Invitational.
 
Rite Aid CEO of stores and president of Rite Aid Corporation Ken Martindale, who also serves as president of the Rite Aid Foundation, and Folds of Honor CEO Major Dan Rooney, kicked off the month of recognition by presenting 18 students from the greater Virginia Beach area with scholarships totaling $90,000 on Wednesday.
 
“There’s no better place for us to begin our month-long recognition of the KidCents scholarships recipients than Virginia Beach, a community that holds the men and women who serve our country, and their families, in the highest regard,” Martindale said. “I know I speak for Rite Aid associates everywhere when I say that to have an opportunity to meet the young scholars and their families, and to hear their stories and listen to them talk about their educational aspirations, is truly an honor. The Rite Aid Foundation is proud to be able to support these students and we look forward to celebrating their continued successes through our partnership with Folds of Honor.”
 
“Today is a proud moment for the Folds of Honor organization and those we serve,” Rooney said. “Folds of Honor stands proudly with the Rite Aid Foundation in recognizing the KidCents scholars across Virginia Beach and the surrounding area as well as the more the 250 students nationwide receiving scholarships. We are honored to be collaborating with The Rite Aid Foundation and are so appreciative of their generous donation, which is helping to fulfill the educational dreams of our American military families.”
 
Folds of Honor was founded in 2007 by Major Dan Rooney, an F-16 fighter pilot in the Oklahoma Air National Guard who served three tours of duty in Iraq. Since its inception, Folds of Honor has raised more than $70 million and awarded nearly 8,000 scholarships to the family members of fallen or disabled veterans.
 
KidCents was developed by The Rite Aid Foundation to provide Rite Aid customers an opportunity to do even more to help the kids in the communities Rite Aid serves. Through KidCents, members of Rite Aid’s wellness+ with Plenti program can round up their in-store or online purchases to the nearest dollar and give their change to one of more than 360 nonprofit organizations focused on improving the health and wellbeing of children.
 
In addition to the donation, Folds of Honor is also able to receive round-up donations from Rite Aid customers through the KidCents program. 
 
Since its inception in 2001, the Rite Aid Foundation has awarded nearly $21 million to non-profit organizations. Additionally, Rite Aid, through the efforts of its customers, supplier partners and associates, has also raised more than $75 million for Children’s Miracle Network Hospitals across the country since 1994.
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DSNTV: Highlights from the Elevation Summit – ‘9 Dangerous Growth Ideas’

BY DSN STAFF

Drug Store News and Mack Elevation Forum co-hosted the one-day Elevation Summit, “9 Dangerous Growth Ideas,” on Aug. 21 at Kevin Taylor’s at the Opera House in Denver.
“This event provides competitive advantage for every company attending and is a perfect place for sales and marketing leadership to gain insights to help think differently about their business,” DSN publisher Wayne Bennett said.
Modeled after the cutting-edge TedX conference series, the joint Mack Elevation/DSN summit brought together nine critical thought leaders from both inside and outside of the industry, to challenge attendees to think beyond their brands to achieve ten times the results.
 “The world is changing, and we need to innovate or die. Disruption is everywhere, and we have to adapt. There’s a marked difference between companies that thrive through the times and those that don’t. The ones that survive react to changes”, said Ryan Olohan, national industry director, health care at Google. “The ones that succeed anticipate, embrace and respond to changes in technology and changes in consumer behavior.”
Watch the video above for highlights from the event.
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