McDonald’s to enforce closure of 169 outlets in north, east India
THE CLOSURE OF 169 RESTAURANTS WILL DIRECTLY IMPACT THE FUTURE OF 10,000 PEOPLE INCLUDING 6,500 MCDONALD’S EMPLOYEES
NEW DELHI: McDonald’ s India Private Limited, the Indian subsidiary of American burger chain on Thursday said that it will enforce the closure of 169 restaurants across north and east India operated by Con naught Plaza Restaurants Pvt Ltd (CPRL), the joint venture between McDonald’s India and Vikram Bakshi.
This came immediately after the National Company Law Appellate Tribunal( NC LAT) did not provide interim relief to Baks hi, against the termination of the franchise agreement by the burger chain, earlier in the day.
The tribunal said it would hear the interim plea along with the main appeal that is scheduled for hearing on 21 September.
“Following the NCLAT hearing today,the termination notice remains effective as of September 6, which requires CPRL to cease the use of the McDonald’ s system and its associated intellectual property. We will continue to take steps to exercise our legal and contractual rights and enforce the termination,” said Barry Sum, director, corporate relations, Asia Foundational Markets, McDonald’ s Corp, in an e-mailed response.
However, Bakshi, in a text message, hinted that McDonald’ s outlets will remain open until a decision (on the termination and NCLAT hearing) is reached by the CPRL board.
“The administrator (appointed by National Company Law Tribunal or NCLT) shall be requested to call for aboard meeting at the earliest so as to discuss the above (NCLAT hearing). Till a decision is taken by the board of CPRL, it is business as usual,” he said.
McDonald’s India, on August 21, terminated its franchise agreement for 169 restaurants across north and east India with CPR L, which was due to be effective from September 6.
However,theNCLT-appointed administrator, justice GS Singhvi, on Wednesday had asked both sides to wait for the hearing of the appellate tribunal on Thursday before taking any decision.