This is an update from someone on one of the news sites that appears to know what's happened.
"Ok. This is the situation. The government 1.5 years ago leased the beach including bars sunbed etc out to 2 brothers. They had a contract for 5 years. At that time the tourist trade was very slow. The managers at the bars have worked so hard to build up trade and customers.
The government have seen that they are now making good business and want to cash in on it. They went to court and won. The brothers did not want the government to have the assets of the beach bars and the sun beds...They belong to the brothers..so all is being dismantled.
It is heart breaking for all concerned. These managers and staff have worked so hard and now they are unemployed . About 70 in all I believe. What about their families and rent they have to pay? The least the government could do would be to wait until the end of the season!!! So angry and upset!!!"
Here's a photo of some of the staff that have lost their jobs overnight.

Just a note that I
think it might be the councils, Fethiye vs Muğla rather than the government, that information doesn't seem clear yet. It went to court and this is how the court decided. That said, from what else I have read the court case was in Ankara so maybe it was the government!