Fresh & Easy Files for Bankruptcy to Help Facilitate Sale

<p>Fresh &amp; Easy Neighborhood Market has filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court. The grocer is currently in the process of trading hands from Tesco to Burkle’s Yucaipa Cos., and has cited debt between $500 million and $1 billion in its court filing, according to The L.A. Times.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>Brendan Wonnacott, Spokesperson for Fresh &amp; Easy, tells AndNowUKnow, " Today's filing is simply the next step in the restructuring process to sell the business to The Yucaipa Companies and will have no impact on our customers shopping experience. It’s business as usual as we continue the transition to new ownership." </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>With six unprofitable years in the chain's recent past plus a deal with Burkle, Fresh &amp; Easy recently started closing down some stores, including a group in San Diego. With Fresh &amp; Easy in bankruptcy, Tesco can back out of leases before they conclude and auction off the brand’s assets, the report notes.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>The announcement of the acquisition sparked speculation regarding the revival of natural grocery chain Wild Oats. Yucaipa will acquire more than 150 of Fresh &amp; Easy’s approximate 200 stores along with its distribution and production facilities.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>Ron Burkle, billionaire Yucaipa founder and former Wild Oats investor, commented that the purchase of Fresh &amp; Easy would give them a solid starting point to complete Tesco’s vision with some changes that the company thinks will make it even more relevant to today’s consumer, according to earlier reports.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>Stay tuned to AndNowUKnow as we follow the Fresh &amp; Easy transition.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.latimes.com/business/money/la-fi-mo-fresh-easy-bankruptcy-20130930,0,2946957.story" target="_new">Los Angeles Times </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.andnowuknow.com/buyside-news/fresh-easy-acquisition-fuels-rumors-wild-oats-return/jordan-okumura" target="_new">Fresh &amp; Easy on ANUK</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">