GLOUCESTER, Ontario -- Montreal-based Provigo said its Loeb Inc. subsidiary will cease business with 19 of 21 Loeb supermarket franchisees that had brought a $95 million lawsuit against it.
franchisees do not have the same time-notice clause that would let Loeb cancel the contract, a Provigo spokeswoman said.
The suit, which also involves punitive damages, was filed at the end of June by 21 Ontario-based Loeb franchisees who disputed parts of their franchise agreements. Loeb said it decided to end the agreement to protect market share and employee jobs.
"By all appearances+ these franchisees are no longer interested in continuing to have business dealings with Loeb. It is, therefore, best to end it as soon as possible," Jim Robertson, Loeb's senior vice president of operations, said in a statement.
"Loeb will ensure the continuation of the stores' activities and maintenance of jobs either by assuming operation of the stores or by designating other franchisees who express interest in operating the stores efficiently and in accordance with the franchise contract."
