Fresh & Easy Neighborhood Market Inc. filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court, weeks after being promised to Los Angeles billionaire Ron Burkle.
The grocery chain, which is in the process of trading hands from British supermarket giant Tesco to Burkle’s Yucaipa Cos., cited debt between $500 million and $1 billion in its court filing Monday.
The move “is simply the next step in the restructuring process” during the sale and will have “no impact” on customers’ shopping experience, Fresh & Easy said in a statement.
“It’s business as usual as we continue the transition to new ownership,” the company said.
As of early September, Fresh & Easy operated more than 150 U.S. stores in California, Arizona and Nevada from its El Segundo headquarters and had more than 4,000 employees.