Tesco's US business Fresh & Easy cancels auction for its stores after Yucaipa Cos. was the sole bidder; under proposed deal, Tesco affiliate would lend Yucaipa affiliate roughly US$126.5M to help fund acquisition

Cindy Allen

November 19, 2013 (Supermarket News) – Fresh & Easy said it has canceled the auction for its stores after Yucaipa Cos. here was the lone bidder.

In documents filed with the U.S. Bankruptcy Court in Wilmington, Del., Fresh & Easy said a hearing to approve Yucaipa’s bid is scheduled for this Friday.

Under the proposed deal, an affiliate of Tesco, Fresh & Easy's British-based parent company, would lend YFE Holdings, a Yucaipa affiliate, approximately $126.5 million to help fund the acquisition, with Tesco receiving warrants to buy 22.5% of the equity in the reorganized company, according to published reports.

Fresh & Easy operates 167 stores in California, Arizona and Nevada.

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