169 outlets of McDonald's to shut down in India
The most loved fast food chain McDonald's said it has planned to close all 169 of its restaurants in northern and eastern regions of India, accelerating a quarrel with its local partner and possibly putting thousands of workers out of jobs.
Because McDonald’s partner Connaught Plaza Restaurants Pvt Ltd (CPRL) had ruptured the terms of their franchise agreements, the US Company was enforced to take the action of shutting down the 169 shops, said the fast food company.
The decision came as a big jolt and the company was studying all its legitimate options, said Vikram Bakshi, managing director of CPRL.
The step by McDonald's India follows a lengthened legal dispute with CPRL that started in the year 2013, when the US Company said Mr. Bakshi's term as Managing Director had ended - a decision Bakshi challenged in the courts.
"The comapny has come up with this decision because McDonald’s thought that Mr. Bakshi was tangled in uneven siphoning actions, so the US company wanted him to go," said A.S. Chandiok, a lawyer on behalf of Bakshi. The lawyer of Mr. Bakshi also added that his client has denied the allegations.