Fresh & Easy Is Said To Prepare For Bankruptcy Filing

Fresh & Easy Neighborhood Market Inc., the former Tesco Plc-owned grocery chain that billionaire Ron Burkle bought in 2013, is preparing its second bankruptcy filing in two years, according to people familiar with the situation.

An application could come as soon as next week, said the people, who asked not to be identified because the process isn’t public. The supermarket company could still find a buyer for all or part of the chain, a move that may forestall a filing, the people said.

An affiliate of Burkle’s investment firm, Yucaipa Cos., bought most of Fresh & Easy’s assets after it sought protection from creditors in 2013. The chain filed for bankruptcy after suffering from poorly located stores and intense competition in its Southern California home market. The company also cited the effects of the U.S. recession.

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