Fresh & Easy has been given new life. British conglomerate Tesco announced today it is handing over 150 of its 200 stores in Arizona, Nevada, and California to L.A. billionaire Ron Burkle, an owner of the NHL’s Pittsburgh Penguins.
Tesco is paying Burkle $126 million to take the money-losing stores off its hands. The remaining 50 grocery stores will be closed, which will cost Tesco another $110 million in payoffs to staff and closure costs.
No word yet on which of the Valley’s 20-plus locations may be closed. The deal is expected to take up to three months to finalize.
Tesco, one of the largest retailers in the world, entered the U.S. grocery market in 2007. The disastrous Fresh & Easy venture is estimated to have cost the company more than $3 billion in losses.
Burkle is managing partner of Yucaipa, which founded the Ralphs and Food4Less supermarket chains. There’s been speculation he plans to use Fresh & Easy stores to relaunch his Wild Oats brand, which he sold to rival Whole Foods in 2007.
Earlier: British giant Tesco says it will dump all 199 Fresh & Easy grocery stores
