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Tesco pulls plug on Fresh & Easy
April 17th, 2013
LONDON – Tesco PLC has confirmed that it will exit the United States and has classified its Fresh & Easy chain as a discontinued operation.
As a result, the retailer will book restructuring and asset impairment charges of 1.2 billion pounds (about $1.87 billion) after tax. That total includes 169 million pounds in operating loss and about 1 billion pounds in noncash items.
The confirmation, which followed rumors that had been circulating for months, was included in Tesco’s fiscal 2012 financial report, which mentioned that the company has received expressions of interest in the Fresh & Easy assets from third parties.
Fresh & Easy debuted in Southern California in November 2007 and currently operates 199 stores in that state, Nevada and Arizona. The chain also operates a distribution center and kitchen, including produce and meat facilities, near Riverside, Calif.
Tesco also booked a onetime charge of 804 million pounds ($1.22 billion) to write down the value of its real estate in the United Kingdom, reflecting a decision not to develop more than 100 locations that were acquired between five and 10 years ago.