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McDonald's 169 outlets to close in North and East India today, future of 10,000 employees remains uncertain

McDonalds would put the shutters down of its 169 outlets in North and East India today. McDonald's India had terminated its contract with Connaught Plaza Restaurants Ltd (CPRL), in which its estranged partner Vikram Bakshi holds 50% of share. 

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As the termination notice period ended on 5 September, the food outlet chain would now close its 169 outlets from today .
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McDonalds would put the shutters down of its 169 outlets in North and East India today. McDonald's India had terminated its contract with Connaught Plaza Restaurants Ltd (CPRL), in which its estranged partner Vikram Bakshi holds 50% of share. 

The company has also barred CPRL from using the brand. It implies that the CPRL can no longer use McDonald's name, system, trademark, design, and associated intellectual property, among other things.

The decision will affect thousands of workers at the McDonald

As the termination notice period ended on 5 September, the food outlet chain would now close its 169 outlets from today casting the shadow of uncertainty over the future of around 10,000 employees. 

The company, however, has assured that it would give due consideration to lessening the impact on affected parties, such as employees, suppliers, and landlords, and is open to working with the CPRL to achieve these ends.

In an official statement, McDonald's Corporation Global Head of Corporate Relations, Foundational Markets, Ron Christianson, had earlier said: "The termination is essentially because of the CPRL's violation of certain obligations as part of the agreement, including a default of payment of royalty." He said the royalty was not paid for two years, even though the CPRL was given ample opportunity to rectify the defaults.

Commenting on the termination notice, Bakshi said the decision was an open challenge to the National Company Law Tribunal (NCLT) judgment, which had directed the CPRL board to meet and discuss various issues.

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