McDonald's announced the decision to completely leave the Russian market after the company temporarily closed its restaurants in the country in March, RIA Novosti reports with reference to the press release from the company.
"After more than 30 years of working in the country, McDonald's Corporation is announcing its exit from the Russian market and initiating the process of selling its Russian business," the press release said.
McDonald's suspended its work in Russia in early March. The chain's restaurants in Russian cities closed on March 14.
The company said that it was a temporary measure that had to be made due to logistics issues. McDonald's also said that all of its Russian employees would still be getting their salaries.
After the official closure of McDonald's restaurants in Moscow and St. Petersburg, several restaurants of the chain that did not belong to the Russian branch and operated on a franchise continued to operate.
McDonald's will resume its work in Russia under a new brand in mid-June. All of its staff, restaurant chain and menu will be preserves, TASS reports with reference to a source in the company.
“All McDonald’s assets are being sold, all jobs are being retained, there will be a new brand, a new chain of fast food outlets that will open at McDonald’s previous sites. We hope that the first opening will be in June,” the source told RBC.
At the same time, McDonald’s statement about its decision to leave the Russian market says that the new restaurant owner will be prohibited from using the McDonald’s logo, name and corporate menu.
Leaving the Russian market means significant losses for the parent company. According to preliminary estimates, it goes about mostly non-monetary assets worth 1.2-1.4 billion dollars. This amount includes both losses from the recalculation of currency in shareholders' equity, and the write-off of net investments in the Russian market.
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