American fast-food giant McDonald’s had recently announced that it is shutting down its business in Russia for good. With the announcement, it marked the exit of one of the leading global brands after the Russia’s unprovoked invasion in Ukraine. The company had said that it would continue to pay its employees in Russia, until they manage to reach a deal with someone who decided to buy the franchise. But now it seems like the company has found a buyer.
Alexander Govor, is an operator of nearly 25 restaurants in Siberia and has agreed to buy all of the 847 restaurants of McDonald’s. Reports say that the buyer has also agreed to keep all the 62,000 Russian employees for nearly two years on equivalent terms. He has also agreed to pay the salaries of the corporate staff until the sale is closed. Govor is a Russia based businessman and has been holding a license since 2015.he is also the founder of Neftekhimservice, which is a refining company. He is also the board member of another business that also owns the Park Hotel and a few private clinics in Siberia. The actual value of the sale has not been disclosed and the deal is expected to be closed in a matter of a few weeks after a regulatory approval has been received.
McDonald’s has functioned in Russia for more than three decades but shut down its stores in Russia in March after the Russian invasion over Ukraine. However, the company had continued to pay the employees. McDonald’s also revealed that it has been losing nearly $55m per month due to the closures in Russia and Ukraine. But then an official announcement was made on May 16, 2022 that said that its business in the country is no longer tenable and also cited humanitarian crisis in the Ukraine which has become an unpredictable operating environment.
McDonald’s had first opened in Russia in Moscow in 1990.
Photo Credits: Pixabay
