Future for McDonald’s in Russia revealed
The US fast-food giant will sell its restaurants, which will be re-opened under a new brand
American fast-food chain McDonald’s announced on Thursday that it has agreed to sell its business in Russia to existing licensee, Alexander Govor. The announcement comes just days after the company said it was exiting the country amid Western sanctions.
Govor has been a McDonald’s licensee since 2015 and has operated 25 restaurants in Siberia.
According to the statement, the businessman will acquire the entire restaurant portfolio in Russia and will operate it under a new name. The agreement is subject to closing conditions, including regulatory approval, the company said, adding that it expects the deal to be closed in the coming weeks. The terms of the deal haven’t been disclosed.
The agreement also stipulates that the buyer retain employees for at least two years on equivalent terms. The buyer also agreed to finance the salaries of corporate employees who work in 45 regions of the country until the deal closes. It will also finance existing liabilities to suppliers, landlords and utilities.
In March, the US company announced it was shutting down its restaurants in Russia and suspending operations, while promising that employees would continue to be paid.
McDonald's has operated in Russia for more than 30 years and has outlets in 850 towns and cities. It employs around 62,000 people in Russia and works with hundreds of local suppliers.
For more stories on economy & finance visit RT's business section