WILMINGTON, Del. — Fresh & Easy Neighborhood Market Inc. filed for Chapter 11 protection in U.S. Bankruptcy Court here late last month.

Fresh & Easy Neighborhood Market Inc. filed for Chapter 11 protection in U.S. Bankruptcy Court here late last month.

The move came less than a month after the 170-store grocery chain reached a deal to be acquired by Yucaipa Cos.

Fresh & Easy, which is owned by British supermarket giant Tesco PLC, says in its bankruptcy filing that it has debt of $500 million to $1 billion.

In a statement released the day it filed, Fresh & Easy callsed the move to seek Chapter 11 protection "the next step in the restructuring process."

"It’s business as usual as we continue the transition to new ownership," the company said.

Fresh & Easy, which entered the highly competitive West Coast grocery market six years ago, has been plagued with troubles from the start.

The company’s debut came just months before the worldwide recession began, and it has continually lost money. Critics also contend that Fresh & Easy relied too heavily on technology in an industry driven by human contact.