As part of an orderly restructuring process, Yucaipa will acquire more than 150 stores as well as Fresh & Easy’s Riverside distribution and production facilities.
More than 4,000 employees will also transfer to the new business. As part of the deal, Tesco will loan the new business c. £80m, secured against the Riverside Campus facility.
Those stores not included in the transaction will be closed over the coming weeks. The total cash outflow relating to the closure of these stores, other expenses and the loan is expected to be no more than £150m.
The sale to Yucaipa, which is subject to the necessary legal and regulatory approvals, is expected to complete within three months. Following the completion of the full sale and disposal process, there will be no ongoing financial exposure for Tesco.
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