Tuesday, September 10, 2013

Fresh & Easy Sold

(Reuters) - Britain's Tesco (TSCO.L) is to lend U.S. billionaire Ron Burkle's Yucaipa investment company 80 million pounds ($126 million) to take the loss-making Fresh & Easy stores off its hands, marking the end of a six-year attempt to crack the U.S. market.

Tesco, the world's third largest retailer, said on Tuesday Yucaipa will acquire over 150 of the California-based Fresh & Easy's stores as well as its Riverside distribution and production facilities. Also 4,000 Fresh & Easy employees will transfer to the new business.

The U.S. deal represents a further reduction in Tesco's international portfolio. In 2012 it pulled out of Japan and last month said it would fold its unprofitable Chinese operation into a state-run company as a minority partner.

Tesco said in April it would sell or close Fresh & Easy, booking restructuring and other one-off costs of 1 billion pounds.


Posted by Steve Sinai


Anonymous said...

This article doesn't address it, but a story in today's SFGate states that the new owner, Burkle, has announced plans to close the Bayview District 9San Francisco) Fresh & Easy. No other planned closures announced.

Tesxo sold its stores because they were losing money. Ron Burkle has a history of mergers and acquistions that turn a profit. Pretty certain that his profits are usually made by streamlining operations. I would expect that there will be some Fresh & Easy outlets either sold off again, or simply closed.

Anonymous said...

150 out of the 200 stores will remain open.

5 Sacramento area stores will also close.


Anonymous said...

Oh crap, I think we're going to be Burkled. I like this store and just having another option.