Fresh & Easy is slated to close its remaining 97 stores in California, Arizona and Nevada, ceasing operations entirely after failing to establish a strong customer base.
The company, which at its peak had already slashed its number of operating stores in half, said Wednesday that all 3,000 of it's employees will be laid off, according to the Los Angeles Daily News.
A worker, who requested to be remain anonymous, said that employees at its Torrance headquarters will be gradually released over the next four weeks. The company had already halted operations at it's El Segundo headquarters earlier this year and consolidated administrative operations in Torrance to save money.
"Over the last two years, we have been working hard to build a new Fresh & Easy," the company said in a statement, Inside Bay Area reported. "While we made progress on stemming our losses and moving the business closer to break even, unfortunately, we have been unable to obtain financing and the liquidity necessary to fund the business going forward."
Fresh & Easy first arrived in the Bay Area in 2007 backed by the financial muscle and know-how of British supermarket chain Tesco, which saw an opportunity to enter the U.S. market.
It targeted time-pressed consumers who may want to quickly grab fresh food for dinner on their way home while using self-service checkouts.
Soon after opening, however, the recession hit, causing the company to lose millions of dollars and close some under-performing stores to avoid losing more money. Despite their efforts, the chain continued to see poor sales, eventually forcing it to file for bankruptcy in 2013, according to The Los Angeles Times.
Billionaire Ron Burkle purchased the ailing company in hopes of repositioning the chain in the marketplace, but that also failed, leading to the brand's current situation.
Fresh & Easy joins Washington-based Haggens as another recent victim of the cutthroat grocery chain market.
