Tesco exits U.S. with Yucaipa deal
LONDON, Sept 10
LONDON, Sept 10 (Reuters) - Tesco has struck a deal with U.S. billionaire Ron Burkle's Yucaipa investment company to take its loss-making Fresh & Easy chain off its hands, marking the end of a failed attempt to crack the cut-throat American market.
Tesco said on Tuesday Yucaipa will acquire over 150 Fresh & Easy stores as well as its Riverside distribution and production facilities. Also 4,000 Fresh & Easy employees will transfer to the new business.
As part of the deal, Tesco will loan the new business about 80 million pounds, secured against the Riverside Campus facility.
The world's third largest retailer said in April it would exit the loss-making business, booking restructuring and other one-off costs of 1 billion pounds ($1.57 billion).
Tesco said the closure of Fresh & Easy stores not part of the deal, other expenses and the loan will total no more than 150 million pounds.