Wednesday, 11 September 2013

Tesco sells Fresh & easy


One of the world’s largest retailers.  I have a holding in my income portfolio (epic code: TSCO)


Tesco announced yesterday that it had disposed of 150 of its 200 Fresh & Easy stores in the USA.  The remainder it will close at a cost of about £70m.  The disposal of the 150 stores (presumably at a benefit of the assumption of the liabilities only) includes a secured £80m loan.

This will conclude Tesco's exposure to the US market, an unhappy affair that never looked like delivering a return on its outlay, culminating in a low cost exit that will also provide 80% of its 5,000 workforce with continuing employment.

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