Possible injunction may cost grocer £20m
Tesco is facing legal action to stop it building a warehouse to supply its Fresh & Easy stores in the US.

The action is being brought by Health First, a group thought to be linked to unions and environmental groups.

However, if an injunction is successful it could cost Tesco between US$39.6 million and US$51 million (£26 million) to arrange re-bidding for the construction contracts, purchasing materials and reassembling the workforce.

Plans for the distribution site to be located in a former airbase in California have already been approved by the March Joint Powers Authority, the regional development organisation in charge of managing reuse of the base.

A Tesco spokesman said: 'Tesco's March distribution centre is expected to bring over 500 jobs to the area and this figure will increase as our business grows. Challenges of this nature - using the state's environmental review process as the basis - are apparently common in California, so we have every reason to believe the March Joint Powers Authority decision will be upheld.'

The court is expected to rule on an injunction next week.

The UK-based grocery giant has plans to open more than 100 Fresh & Easy format stores in Arizona. California and Nevada.