0
0
1
600
3424
Proactive Management
28
8
4016
14.0
Normal
0
false
false
false
EN-US
JA
X-NONE
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-fareast-language:JA;}
Tesco, a
major UK-based retailer with a significant market presence in Europe, plans to
introduce 3D Printing Services at (at least some of) its stores.
major UK-based retailer with a significant market presence in Europe, plans to
introduce 3D Printing Services at (at least some of) its stores.
Here’s a
link to an article about that:
link to an article about that:
But, don’t
look for 3D Printing Services at Tesco’s retail operations in the U.S. Here’s a related story that talks about what
looks will be Tesco’s exit from the U.S. market.
look for 3D Printing Services at Tesco’s retail operations in the U.S. Here’s a related story that talks about what
looks will be Tesco’s exit from the U.S. market.
By Tom Hals
Mon Sep 30, 2013
3:33pm EDT
3:33pm EDT
(Reuters) – Britain’s
Tesco Plc (TSCO.L) put its U.S. grocery store chain into bankruptcy on Monday as part of a plan to sell most of the 167 stores
to a private equity firm led by billionaire Ron Burkle.
Tesco Plc (TSCO.L) put its U.S. grocery store chain into bankruptcy on Monday as part of a plan to sell most of the 167 stores
to a private equity firm led by billionaire Ron Burkle.
The bankruptcy ends the grand entrance onto the U.S. stage of Britain’s
biggest supermarket chain. When Tesco launched the chain in Arizona, California
and Nevada in 2006, many expected the deep-pocketed company to quickly expand
to challenge the dominant U.S. food retailer, Wal-Mart Stores Inc (WMT.N).
biggest supermarket chain. When Tesco launched the chain in Arizona, California
and Nevada in 2006, many expected the deep-pocketed company to quickly expand
to challenge the dominant U.S. food retailer, Wal-Mart Stores Inc (WMT.N).
But Tesco jumped into
the U.S. Southwest just as the region’s sizzling real estate market began to
cool, and the U.S. business never generated a profit, according to Bankruptcy Court
documents.
the U.S. Southwest just as the region’s sizzling real estate market began to
cool, and the U.S. business never generated a profit, according to Bankruptcy Court
documents.
Under the proposed
sale, an affiliate of Tesco will lend Burkle’s private equity firm Yucaipa Cos
$120 million to help fund the takeover of the chain, Fresh & Easy
Neighborhood Market Inc. Yucaipa anticipates acquiring and operating 150
stores.
sale, an affiliate of Tesco will lend Burkle’s private equity firm Yucaipa Cos
$120 million to help fund the takeover of the chain, Fresh & Easy
Neighborhood Market Inc. Yucaipa anticipates acquiring and operating 150
stores.
Tesco has said the
stores that are not sold will be closed. It has said about 4,000 jobs will be preserved
out of 4,187 current employees.
stores that are not sold will be closed. It has said about 4,000 jobs will be preserved
out of 4,187 current employees.
A unit of Tesco will
end up with a 22.5 percent stake in the Yucaipa affiliate that acquires the
grocery store chain, according to documents filed in the U.S. Bankruptcy Court
in Delaware.
end up with a 22.5 percent stake in the Yucaipa affiliate that acquires the
grocery store chain, according to documents filed in the U.S. Bankruptcy Court
in Delaware.
The proposed sale to
Yucaipa will serve as a leading bid in a court-supervised auction, which Fresh
& Easy said it plans to hold on November 11. The company asked the court to
schedule a hearing on November 13 to approve the sale.
Yucaipa will serve as a leading bid in a court-supervised auction, which Fresh
& Easy said it plans to hold on November 11. The company asked the court to
schedule a hearing on November 13 to approve the sale.
Tesco spent $610
million in the first two years building the business, and sales eventually grew to $1.2 billion annually,
according to court documents.
million in the first two years building the business, and sales eventually grew to $1.2 billion annually,
according to court documents.
But the business was
never able to support the top-of-the-market leases, and it was losing $22
million a month over the past year, according to the documents.
never able to support the top-of-the-market leases, and it was losing $22
million a month over the past year, according to the documents.
Bankruptcy will allow
Fresh & Easy to reject or renegotiate leases that are no longer economical.
Fresh & Easy to reject or renegotiate leases that are no longer economical.
The company’s biggest
creditor is Tesco, which is owed $738 million. Tesco has taken a 1 billion
pound (or $1.6 billion) writedown on the U.S. chain.
creditor is Tesco, which is owed $738 million. Tesco has taken a 1 billion
pound (or $1.6 billion) writedown on the U.S. chain.
Fresh & Easy also
owes $18.4 million to vendors.
owes $18.4 million to vendors.
The Chapter 11
bankruptcy filing comes as Tesco is in the midst of $1.6 billion turnaround
plan. Once the envy of British retailers, Tesco has been hurt by falling
profits, a costly retreat from the U.S. and Japanese markets, and revelations that horsemeat had been found in some
meat products sold by Tesco and other retailers.
bankruptcy filing comes as Tesco is in the midst of $1.6 billion turnaround
plan. Once the envy of British retailers, Tesco has been hurt by falling
profits, a costly retreat from the U.S. and Japanese markets, and revelations that horsemeat had been found in some
meat products sold by Tesco and other retailers.
The case is In Re:
Fresh & Easy Neighborhood Market Inc, U.S. Bankruptcy Court, District of
Delaware, No. 13-12569.
Fresh & Easy Neighborhood Market Inc, U.S. Bankruptcy Court, District of
Delaware, No. 13-12569.
(Reporting by Tom Hals in
Wilmington, Delaware; Editing by John Wallace)
Wilmington, Delaware; Editing by John Wallace)
Leave a Reply