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McDonald's to shut business in Iceland

McDonald's Corp said it would shutter its business in Iceland in the wake of the country's financial crisis, saying the economy and other challenges made doing business there financially impossible.

business Updated: Oct 27, 2009 10:16 IST

McDonald's Corp said on Monday it would shutter its business in Iceland in the wake of the country's financial crisis, saying the economy and other challenges made doing business there financially impossible.

* McDonald's to shutter business in Iceland

* Three restaurants in the country to close on October 31

The world's largest fast-food company said all three of its restaurants in Iceland, operated by franchisee Jon Ogmundsson, would close at midnight on October 31.

"The unique operational complexity of doing business in Iceland combined with the very challenging economic climate in the country makes it financially prohibitive to continue the business,"

McDonald's Europe said in a statement.

"This complex set of challenges means we have no plans to seek a new partner in Iceland," the company said.

Iceland's banks collapsed at the height of the global credit crisis, devastating the country's economy and leaving it dependent on a $10 billion aid package led by the International Monetary Fund.

Ogmundsson has operated the McDonald's restaurants since 2004.