SACRAMENTO, CA - A British corporation that opened six small grocery stores in the Sacramento area and Modesto last year is closing them.
Tesco Corporate Affairs Director BrendanWonnacott says those six Fresh & Easy markets are not part of a sale to Yucaipa Companies LLC. Yucaipa is taking over more than 150 Fresh & Easy stores and some 4,000 employees will keep their jobs.
Wonnacott says Tesco is providing a severance package to the employees at the five closing Sacramento and oneModesto locations. Those stores are at Mack Road and Franklin Boulevard; Watt Avenue and El Camino Boulevard (Sacramento); Elk Grove-Florin Road and Calvine Road (Elk Grove); Lake Natoma and Blue Ravine Road (Folsom); E. Joiner Parkway (Lincoln); and Oakdale Road and E. Briggsmore Avenue (Modesto).
The price of most products in the affected stores will be trimmed by 25 percent starting Wednesday, Wonnacutt added.
The change in ownership was not completely unexpected. Last spring, Tesco said it was looking for a buyer for its U.S. stores.
The Tesco-Yucaipa deal is expected to be completed within three months, Wonnacott said.