Yucaipa Companies

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The Yucaipa Companies
Private
Industry Private equity
Founded 1986
Founder Ronald Burkle
Headquarters Los Angeles, California, United States
Products Leveraged buyout
Website yucaipaco.com

The Yucaipa Companies, LLC is a Los Angeles-based holding company founded in 1986 by Ronald Burkle.[1] It specializes in private equity and venture capital, with a focus on middle-market companies, growth capital, industry consolidation, leveraged buyouts, and turnaround investments. It generally invests $25–$300 million in companies with $300–$500 million in revenues.[2]

Yucaipa has a history of leveraged buyouts in supermarket and grocery chains, beginning with Jurgensen's Markets in 1986. After several standalone investments in the late 1980s, it went on to lead the consolidation of West Coast retail that occurred during the 1990s due in part to the rise of discount centers like Wal-Mart.[3][4] In October 2014, The Yucaipa Companies acquired British retailer Tesco's Fresh & Easy chain five years after it had entered the U.S. market.

History

Yucaipa Boeing 757-200 bizjet

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, due to rising fuel prices, new competition for inter-island travel, a tightening credit market, and dwindling interest by investors in the airline industry.

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.[citation needed] It is unknown at this time what the future plans are for the Aloha name.

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.[12][13]

Controversy

Former U.S. President Bill Clinton, a close friend of founder Ron Burkle, was an advisor to Yucaipa.[14] From 2003 to 2006, Bill and Hillary Clintons' tax returns show total Yucaipa partnership income of $12.5 million. According to the 2007 summary provided by Hillary Clinton's presidential campaign, the Clintons earned $2.75 million from the Yucaipa partnership.[15]

References

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  10. ↑ [1][dead link]
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  12. ↑ Milford, Phil, and Shruti Date Singh, "AFA Foods Files for Bankruptcy Citing 'Pink Slime' Coverage", April 2, 2012, Bloomberg News. Retrieved 2012-04-02.
  13. ↑ Lewis, Al, “Dude, people just don’t want to eat pink slime”, MarketWatch, April 4, 2012. Retrieved 2012-04-04.
  14. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  15. ↑ Lua error in package.lua at line 80: module 'strict' not found.
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