Yucaipa, an investment company, is acquiring the Fresh & Easy grocery store chain from Tesco. Tesco, a British retailer, first started opening the grocery stores in California in 2007. Reuters reports
that Yucaipa, run by billionaire Ron Burkle, will acquire over 150 Fresh & Easy stores in the deal. Fresh & Easy published a FAQ
about the deal that says about 4,000 jobs will be preserved by the deal.
The San Francisco Gate reports
that the deal still leaves about 50 Fresh & Easy stores that will close. Tesco has been trying to sell its U.S. grocery venture since April 2013, so overall the deal is seen as a good one for Fresy & Easy despite the store closings. All the stores likely would have closed without the sale to Yucaipa.
The L.A. Times reports
that Tesco lost an estimated $2 billion in this failed attempt to conquer the U.S. grocery market.
Image: Fresh & Easy