Struggling grocer Fresh & Easy will begin winding down operations in preparation for the shutdown of all of its 97 stores in California, Arizona and Nevada.
The chain, owned by investment firm Yucaipa Companies, had been U.K. supermarket giant Tesco’s first foray into the U.S. market when it debuted in 2007. Tesco invested millions of dollars and opened more than 200 stores and a warehouse facility, but the retailer’s format, offering prepared foods and private label brands in smaller-sized stores, didn’t catch on with shoppers.
“Over the last two years, we have been working hard to build a new Fresh & Easy,” said spokesman Brendan Wonnacott in a statement “While we made progress on stemming our losses and moving the business closer to break even, unfortunately we have been unable to obtain financing and the liquidity necessary to continue to fund the business going forward.”
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As part of Fresh & Easy’s “organized wind-down,” the retailer will be seeking opportunities to sell all or part of the business, Wonnacott added.
Current owner Yucaipa acquired the retailer in 2013 following a bankruptcy filing. The new owners closed 50 of the chain’s 167 stores in March and another 14 in July, with a handful of closings since, according to Supermarket News. The company did not comment on any plans for a bankruptcy filing.
