Fresh & Easy Files for Bankruptcy

Los Angeles-based Yucapia is purchasing the majority of Fresh & Easy’s stores.

October 03, 2013

WILMINGTON, DE — As expected, Fresh & Easy Neighborhood Market has filed for bankruptcy protection in U.S. Bankruptcy Court, the Los Angeles Times reports.

The filing occurred earlier this week with a plan to sell the company through a bankruptcy auction to Los Angeles-based Yucaipa Cos. Previously, Fresh & Easy, a division of U.K.-based Tesco, had said it would sell the majority of its locations to Yucaipa. Its bankruptcy filing was thought to allow Fresh & Easy to exit the leases that Yucaipa had not agreed to purchase.

“Many of Fresh & Easy’s leases are substantially above market, relative to its competitors,” Fresh & Easy Chief Financial Officer James Dibbo said in an affidavit. “The effect of the real estate market was especially pronounced.”

The move “is simply the next step in the restructuring process,” Fresh & Easy said. “It’s business as usual as we continue the transition to new ownership.”

Fresh & Easy employs more than 4,000 people in the United States.

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