BELLINGHAM, Wash. — Washington state has reached an agreement with Bellingham-based Haggen to ensure the grocer’s laid-off workers will be paid on time.
The Bellingham Herald reports that State Attorney General Bob Ferguson said the company’s lawyers have told his office that they will follow state law and pay laid-off workers at the end of the pay period.
Haggen is currently going through the Chapter 11 bankruptcy reorganization process.
Last week, Haggen filed a motion in court seeking relief from the “fast pay” laws in states where the grocer planned to close stores. The company also announced last week that it will be cutting 1,073 jobs starting on Tuesday, Nov. 24.
Haggen filed for bankruptcy earlier this month. According to court documents, the struggling grocer owes its creditors more than $55 million.
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