|Headquarters||Los Angeles, California, United States|
Yucaipa has a history of leveraged buyout investments in supermarket and grocery chains beginning with Jurgensen's Markets in 1986. After several standalone investments in the late 1980s, Yucaipa went on to lead the consolidation of West Coast retail that occurred during the 1990s. In September 2013, The Yucaipa Companies acquired British retailer Tesco's Fresh & Easy chain after five years in the U.S. market.
Most recently, Yucaipa acquired stakes in Colorado-based Wild Oats Markets, A&P, the parent company of New Jersey-based Pathmark Stores, and Minnesota-based Supervalu, among others. Former US President Bill Clinton, a close friend of Burkle, was an advisor to the Yucaipa. From 2003 to 2006, Bill and Hillary Clintons' tax returns show total Yucaipa partnership income of $12.5 million. The 2007 summary provided by Hillary Clinton's Presidential campaign lists $2.75 million in partnership income.
- 1987: Food 4 Less grocery franchise of Kansas City acquired for $35 million
- 1989: Boys Markets acquired for $375 million
- 1991: Alpha Beta California supermarket chain acquired for $271 million
- 1994: Smitty's Phoenix-based supermarket operator acquired for $138 million
- 1994: Ralphs Grocery Co. Southern California supermarket chain acquired for $1.5 billion; Alpha Beta and Boys outlets subsequently rebranded as Ralphs
- 1995: Dominick's Chicago grocery store chain acquired for $750 million
- 1999: invests $3 million in GameSpy, and $25 million in Cyrk, Inc.
- 2004: TDS Logistics purchased by Yucaipa (according to TDS Logistics site )
- 2004: Yucaipa acquires Piccadilly Restaurants
- 2005: Yucaipa becomes the majority shareholder in Aloha Airlines in a $100 million bid to purchase the airline.
- 2005: acquires 40% stake in Pathmark for $150m
- 2008: acquires stake in Barnes & Noble
- 2011: increases stake in The Great Atlantic & Pacific Tea Company as part of restructuring following Great Atlantic's bankruptcy
- 2012: Stake in Barneys New York
- 2013: Acquired Fresh & Easy from Tesco
Aloha Airlines purchase
In February 2006, Aloha Airlines was taken into private ownership by Yucaipa Companies. After 61 years in business, passenger operations were suddenly shut down on March 31, 2008. Rising fuel prices, new competition for inter-island travel, a tightening credit market, and dwindling interest by investors in the airline industry, were all cited as contributing factors.
In January 2011 Yucaipa won federal Bankruptcy Court approval to buy the Aloha name and other intellectual property for $1.5 million with a stipulation that it not resell the name to Mesa Air Group, the parent of go! Mokulele. It is unknown at this time what the future plans are for the Aloha name.
Relationship with organized labor
Yucaipa has also shown a commitment to labor relations in many of its investments. Worker friendly practices and a willingness to engage with unions have proven to be effective tools in Yucaipa's investment strategy. Yucaipa has recently branched out into Employee Stock Ownership Plans (ESOP), with the creation of the American Working Capital group.
Caught in the pink slime controversy and with interim chief executive Ron Allen citing "ongoing media attention" that has "dramatically reduced the demand for all ground beef products" in 2012, Yucaipa's AFA declared Chapter 11 bankruptcy. Based in King of Prussia, Pennsylvania, AFA at the time the controversy broke had about 850 employees and annual revenues of $958 million.
- Kuhnhenn, Jim, and Devlin Barret (04-05-2008). "Clintons Made $109 Million Since 2000". Associated Press. [dead link]
- "Pathmark-Yucaipa Deal OKd - Los Angeles Times". Articles.latimes.com. 2005-06-10. Retrieved 2013-09-11.
- Canada, Hillary (2012-09-04). "Yucaipa Returns to Market With $1.65 Billion Target - WSJ.com". Online.wsj.com. Retrieved 2013-09-11.
- "Burkle's Yucaipa Divests B&N Stake - WSJ.com". Online.wsj.com. 2012-06-05. Retrieved 2013-09-11.
- "UPDATE 1-Burkle ups Barnes & Noble stake, cites concerns". Reuters. 2009-11-13. Retrieved 2013-09-11.
- "A&P wins exit financing, files plan - The Deal Pipeline". Thedeal.com. Retrieved 2013-09-11.
- [dead link]
- "Tesco offloads loss making Fresh & Easy chain". bbc.co.uk. 2013-09-10. Retrieved 2013-09-10.
- "American Working Capital". American Working Capital. Retrieved 2013-09-11.
- Milford, Phil, and Shruti Date Singh, AFA Foods Files for Bankruptcy Citing 'Pink Slime' Coverage, April 2, 2012. Bloomberg News. Retrieved 2012-04-02.
- Lewis, Al, “Dude, people just don’t want to eat pink slime”, MarketWatch, April 4, 2012. Retrieved 2012-04-04.
- The Yucaipa Companies, LLC (Business Week Profile)
- The Yucaipa Companies LLC (Yahoo! Profile)
- The Yucaipa Companies (company website)
- The Yucaipa Companies (Crunchbase Company Profile)
- The Yucaipa Companies (Spoke Company Profile)