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Private equity investment company Yucaipa Cos. last week won court approval to buy 150 Fresh & Easy Neighborhood Markets from U.K.-based Tesco.
According to published reports, Judge Kevin Carey signed off on the deal, which is being financed by Tesco with a $120 million loan.
An attorney for Yucaipa told the judge during the bankruptcy hearing that he expects the relaunched Fresh & Easy will achieve positive EBITDA of tens of millions of dollars.
Yucaipa hired James Keyes, 7-Eleven Inc.’s former CEO, to design a successful strategy for Fresh & Easy and negotiate the deal with Tesco.
Yucaipa has a proven track record in turning around troubled grocery stores, and industry experts expect him to accomplish what Tesco couldn’t on American soil, despite its success overseas -- delivering a Fresh & Easy concept that is tailored to American consumers.