The court has approved the $215 million interim financing that Haggen will be getting from its existing lenders, according to a report from the Dispatch Times.
The approval comes days after the grocery chain has filed for a Chapter 11 bankruptcy protection.
The Dispatch Times also reported that the court order states that the interim loan is "vital" for the preservation of the company as it reorganizes.
Haggen will be using the $215 million to maintain operations and the flow of merchandise to its stores during the sale process.
On September 8, 2015, Haggen has voluntarily filed for a Chapter 11 bankruptcy protection to reorganize the business around its core profitable stores, according to a press release issued by Haggen.
The company received commitments from its existing lender for a debtor-in-possession financing for up to $215 million.
John Clougher, CEO of Haggen, said in the press release that the Chapter 11 bankruptcy protection is the best course of action for the company.
"After careful consideration of all alternatives, the company concluded that reorganization through the Chapter 11 process is the best way for Haggen to preserve value for all stakeholders," he said.
Clougher added in the press release that the action they were taking allows the company "to continue to serve its customers and communities."
He also said that it provides "Haggen with a process to re-align its operations to be positioned for the future."
The Los Angeles Times reported that Haggen has been struggling since paying more than $1.4 billion for 146 Albertsons, Vons, Pavilions and Safeway grocery stores.
The move has swiftly expanded Haggen from an 18-store chain in the Pacific Northwest to a regional West Coast player.
The Los Angeles Times adds that the company has spent the early part of 2015 in converting their acquired stores to the Haggen brand.
The company though has failed to win customers, some complaining that the stores prices are more expensive than the ones Haggen replaced.
