Ediya Coffee has terminated its franchise contract with Korean Air Lines’ heiresses Cho Hyun-min and Cho Hyun-ah over the “water rage” scandal.

On the coffee chain’s official website, CEO Moon Chang-gi said in a written statement that the two sisters’ ownership of Ediya Coffee shops had marred the company’s reputation significantly, and it had notified them of the termination of their franchise contract on Wednesday.

It has reached an agreement with the two to close the stores by June 30. 

Ediya Coffee has been embroiled in controversy, as it was revealed that the two sisters were running stores under its franchise.

Cho Hyun-min has recently come under fire for alleged assault, while Cho Hyun-ah was at the center of the “nut rage” incident in which she ordered a plane to return to its boarding gate because she was unhappy with the way she was served nuts. They are the daughters of Cho Yang-ho, chairman of Hanjin Group, which is the parent company of Korean Air Lines.

CEO Moon also noted that Ediya Coffee is not an affiliate of Hanjin Group and denied that the group held shares in the firm. Moon holds 67 percent of the company’s shares, while senior adviser Kim Sun-woo has a 25 percent share and the remaining 8 percent stake is held by others.

“(Ediya Coffee) hopes there will be no more controversies related to Hanjin Group. And we plan to take concrete actions against any rumors and false reports,” said Moon.

By Ahn Sang-yool (koolsangon@heraldcorp.com)