Suppliers, former employees and others that are stuck with $150 million in losses from the bankruptcy of grocer Fresh & Easy LLC have sued billionaire Ron Burkle, accusing the private-equity chief of plundering the troubled grocery chain, the Wall Street Journal reported today. Through his Yucaipa Cos., Burkle is a major player in the hard-hit grocery industry, owning a piece of Great Atlantic & Pacific Tea Co. — which filed for bankruptcy in July 2015 — as well as Fresh & Easy, which followed A&P into bankruptcy in October. Both chains are liquidating or being sold off in small chunks, wiping out thousands of jobs and leaving hundreds of millions of dollars in debts unpaid. The lawsuit was filed on Tuesday by the unsecured creditors’ committee in Fresh & Easy’s chapter 11 proceeding. A lawyer for Burkle said Wednesday that the creditors’ allegations will be disproved. Creditors want a court order to stop Burkle and associated entities from allegedly plundering 19 stores that Fresh & Easy creditors say rightfully belong to them. Earlier this year, court papers revealed Fresh & Easy creditors have been demanding information from Yucaipa about the alleged transfer of the stores — involving real estate worth at least $40 million, creditors say — from Fresh & Easy to a Yucaipa affiliate.
