Blog: Tesco draws line under US venture
Michelle Russell | 27 November 2013
Tesco has finally drawn a line under its failed US venture with the announcement the sale of much of its business in the market has been sold.
After six years of losses, Tesco has closed its deal, announced in September, to sell assets to Yucaipa, the investment vehicle of US billionaire Ron Burkle,
The UK retail giant confirmed completion of the sale of over 150 stores and the unit's distribution and production facilities in California in a London Stock Exchange filing.
"Following the announcement of 10 September 2013 that Tesco had agreed the sale of the substantive part of Fresh & Easy's operating business to YFE Holdings Inc., an affiliate of Yucaipa Companies LLC, Tesco is today confirming the completion of the transaction," a statement read.
It was all a far cry from the words of former CEO Sir Terry Leahy in 2006, when he announced the retailer's plans to enter the US.
"With the new format we now think we can expand and be profitable in America," he said.
Tesco failed to make a profit in the US. The deal with Yucaipa even cost the retailer money.
All eyes are now on what Burkle and Yucaipa plan to do with the business.
Click here for just-food's insight into Tesco's US foray and what Yucaipa could do next with Fresh & Easy.
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