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
November 19, 2013
– 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.