June 30,2017:

Parties are litigating at London Court of International Arbitration.

In a setback to US-based fast food chain McDonald’s, 43 of total 55 outlets will be shut in Delhi from today, on failure to renew  the eating house licenses by its North and East India licensee Connaught Plaza Restaurants Pvt Ltd (CPRL).

CPRL is the local joint venture between Mr. Vikram Bakshi and the McDonald’s.

When contacted, McDonald’s said “eating house licenses of a number of the McDonald’s restaurants in Delhi have expired”.

Since last two years, Vikram Bakshi and the McDonald’s are in loggerheads over control of the CPRL and the arbitration proceeding is being pursued by food chain at London Court of International Arbitration.

Without specifying the number, a highly placed source has stated that more outlets in Capital could be shut as a result of the expired licences.

McDonald’s India Pvt Ltd (MIPL),Spokesperson Barry Sum  stated that,”Board of CPRL is working to obtain required licenses. Pending this, CPRL is temporarily suspending operations of affected restaurants”.

When asked about possible job losses due to the closure, Sum added that the rumour about the employees becoming jobless is absolutely erroneous.

 

Source - PTI