Tesco has agreed to sell the fundamental part of Fresh & Easy’s operating business to an affiliate of investment firm, Yucaipa Companies LLC, called YFE Holdings Inc. The deal means Yucaipa will procure more than 150 stores and Fresh & Easy’s Riverside distribution and production facilities. Over 4,000 employees will transfer with the business.
Part of the arrangement, due to be complete in three months, will see Tesco loan about £80 million to the new company, secured against the Riverside campus facility. Those stores not included in the transaction will be closed over the coming weeks.
Philip Clarke, CEO of Tesco, said, "The decision [..] represents the best outcome for Tesco shareholders and Fresh & Easy's stakeholders. It offers us an orderly and efficient exit from the US market, while protecting the jobs of more than 4,000 colleagues at Fresh & Easy."
Fresh & Easy first opened in November 2007 and has 200 neighbourhood markets in California, Nevada and Arizona, employing more than 5,000 people.
© 2013 - Checkout Magazine by Genna Patterson