United Kingdom
By ANUK Staff
04.08.13
The Fresh & Easy U.S. exit could cost Tesco about $382 million in cash; the equivalent of 250 million pounds.
The news was revealed in a Bloomberg report on Shore Capital's estimates. According to a Telegraph report, while Tesco would face a 1 billion-pound writedown, the “greater area of interest is the cash costs from exit, given most investors will have already anticipated the paper adjustment to the asset base,” Shore Capital's analyst Clive Black wrote in a note to investors.
Chief Executive Officer for Tesco, Philip Clarke, is reviewing all options for the U.S. stores, the report states, and plans to reveal progress at the company’s results on April 17.
Aldi has been hinted at as one of the potential buyers, but the source notes that a closure of Fresh & Easy, followed by a piece-by-piece sale of the assets remains the most probable outcome.
Since creating the business in 2007, Tesco has invested about 1 billion pounds in the U.S.
