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Tesco hits a rough patch in California


EL SEGUNDO, Calif. Tesco is learning the hard way that you can’t always get what you want.

Three weeks after launching the first Fresh & Easy stores in the United States, the chief executive of Tesco’s American operation, Tim Mason, has said that the number of outlets will rise to around 200 by February 2009.

The supermarket chain, however, has suffered a legal obstruction in its expansion plans.

According to the Financial Times, a California court stated that Tesco’s main warehouse “did not comply with an environmental planning law.”

Health First and the United Food and Commercial Workers union brought in the case.

The UFCW previously tried to prevent the expansion of Wal-Mart in California.

While Tesco executives are aware that the closure of the warehouse could lead to the shut down its U.S. operations, the company said its remains hopeful.

"We will review the ruling to understand what further compliance might be necessary but there is nothing in the ruling handed down that we believe will affect the operation or further roll-out of the business," Tesco said in a statement.

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