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Thursday, October 03, 2013

Fresh & Easy files for bankruptcy

http://www.thepacker.com/fruit-vegetable-news/Retailer-Fresh--Easy-files-for-bankruptcy-225849851.html


Fresh & Easy owes Tesco $738 million, according to a report in Bloomberg Businessweek. Fresh & Easy asked court permission to use $5 million to pay all Perishable Agricultural Commodities Act and Packers and Stockyards Act claims, according to Fresh Facts blogger Jason Klinowski.

The prospect of a sale was in the air since December, when Tesco chief executive officer Philip Clarke said the chain wasn’t profitable enough to sustain its $1.6 billion investment. Yucaipa’s purchase for an undisclosed amount was expected to be final by the end of the year.

The stores, a distribution center and other assets were valued at $362.8 million in February. Pre-tax net losses were $258.5 million for the last fiscal year.

Tesco expects to spend the equivalent of $237.3 million on store closures and other expenses. Those include a loan of $126.6 million to the new company.

About 4,000 of Fresh & Easy’s more than 5,000 employees will keep their jobs. Yucaipa also acquires Fresh & Easy’s Riverside, Calif., distribution and production facility.


Fresh & Easy owes Tesco $738 million, according to a report in Bloomberg Businessweek. Fresh & Easy asked court permission to use $5 million to pay all Perishable Agricultural Commodities Act and Packers and Stockyards Act claims, according to Fresh Facts blogger Jason Klinowski.
The prospect of a sale was in the air since December, when Tesco chief executive officer Philip Clarke said the chain wasn’t profitable enough to sustain its $1.6 billion investment. Yucaipa’s purchase for an undisclosed amount was expected to be final by the end of the year.
The stores, a distribution center and other assets were valued at $362.8 million in February. Pre-tax net losses were $258.5 million for the last fiscal year.
Tesco expects to spend the equivalent of $237.3 million on store closures and other expenses. Those include a loan of $126.6 million to the new company.
About 4,000 of Fresh & Easy’s more than 5,000 employees will keep their jobs. Yucaipa also acquires Fresh & Easy’s Riverside, Calif., distribution and production facility.
- See more at: http://www.thepacker.com/fruit-vegetable-news/Retailer-Fresh--Easy-files-for-bankruptcy-225849851.html#sthash.3xQIdg1J.dpuf

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