Dive Summary:
- Tesco announced yesterday that it would sell roughly 150 of its 199 Fresh & Easy Neighborhood markets to an investment group headed by billionaire Ron Burkle. The remaining stores will be closed.
- The purchase gives Burkle's Yucaipa Cos. LLC a substantial footprint in California, Nevada and Arizona.
- About 400 people will lose their jobs.
Dive Insight:
British owner Tesco has struggled since the beginning with the Fresh & Easy brand. Burkle, on the other hand, has had tremendous success in turning around supermarket chains -- particularly Ralph's and Food 4 Less.Burkle was also an investor in the Wild Oats chain that was sold to Whole Foods. And Burkle still controls the Wild Oats brand name. The supermarket business is abuzz with rumors that Burkle plans to use the Fresh & Easy stores to revive Wild Oats.