Tesco’s Fresh & Easy Neighborhood Market has canceled its proposed auction to sell its assets after no offers were made to compete with Yucaipa’s bid for the company.
On Friday, November 22, the retail chain will seek bankruptcy court approval to sell virtually all of its assets to supermarket mogul Ron Burkle’s Yucaipa Cos.
Under the proposed deal, a Tesco affiliate would lend the Yucaipa unit $120 million to help fund the acquisition, according to court papers. Tesco would get warrants to buy as much as 10% of the equity in the reorganized chain. Fresh & Easy would get 22.5% of the equity in the reorganized chain if the Yucaipa’s affiliate’s offer prevails, according to Bloomberg.
In late September, the company sought bankruptcy protection listing nearly $1 billion in debt and nearly $500 million in assets.
Stay tuned to AndNowUKnow as we follow the Fresh & Easy transition.
