DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

US Billionaire Ron Burkle Reportedly In Talks To Buy Fresh & Easy

By square1
Share this article
US Billionaire Ron Burkle Reportedly In Talks To Buy Fresh & Easy

American billionaire investor Ron Burkle is reportedly in discussions to buy Tesco's failed US venture, Fresh & Easy.

According to reports, Burkle, founder of US investment fund Yucaipa Cos., wishes to rebrand the Fresh & Easy stores under the since defunct Wild Oats banner. Burkle was the largest shareholder in Wild Oats in 2007, when it was acquired by Whole Foods Market in a $565 million deal, which included 110 stores in the US and Canada. Whole Foods had been considering the acquisition of Colorado-based Wild Oats since 2001 but did not act on it for six years, as the 'timing was not right', according to the organic food giant.

The Wild Oats name is currently owned by former 7-Eleven chief executive Jim Keyes, who would run Burkle's new chain of stores, according to sources. Wild Oats opened its first store in 1987 and recently announced a limited brand relaunch on its website, with products such as granola, pretzels, popcorn, pancake mixes and canned goods expected to be on 'store shelves in 2013'. A statement on the website said, "In February 2007, the brand was sold and has not been on the market since. We are now bringing this great brand back to you—the consumers who made it successful."

Tesco announced on 17 April of this year that it would leave the US, following a strategic review of the loss-making venture in 2012. Tesco invested around £1 billion ($1.6 billion) into the chain of some 200 stores before deciding that Fresh & Easy, which is predominantly based in urban areas in Western states, was a drain on both time and money. Tesco's chief financial officer, Laurie McIlwee told analysts on 5 June that the retailer was "in advanced discussions with a number of parties interested in taking over Fresh & Easy in its entirety." The Fresh & Easy chain struggled from the outset to compete with Aldi Nord's trendy and long-established Trader Joe's chain, which has something of a cult following in the States for its range of quirky own-brand products. Trader Joe's, owned by German retail giant Aldi Nord since 1979, has around 370 stores in the US and sells an estimated $1750 in merchandise per sqaure foot. Fresh & Easy, by comparison, achieved only $11-$25 per square foot during its opening months. (14 June)

 

© 2013 - ESM: European Supermarket Magazine by Ellen Lunney

ADVERTISEMENT
Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.