10 May,2019 02:16 PM IST | | mid-day online correspondent
McDonald's. Representational Picture
United States fast-food chain McDonald's Corp. and it's estranged partner in India Vikram Bakshi ended their 6-year-long dispute after the former bought out the latter's 50 per cent stake in the Connaught Plaza Restaurants Ltd joint venture.
This marks the end of an association between McDonald's and Vikram Bakshi. He was the first to open a McDonald's restaurant in India, when he did so in the mid-90s. Furthermore, the brand expanded to more than 160 restaurants in North and Eastern regions of the country.
McDonald's India Pvt. Ltd (MIPL) and its affiliate McDonald's Global Markets Llc, entirely owns CPRL, the US fast-food chain said in a statement on Thursday. The head of the CPRL chain will now be Robert Hunghanfoo.
Although, the financial details pertaining to this transaction was not disclosed by McDonald's India.
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McDonald's plans to review the 160 outlets it has in the North and East regions, said Director of Corporate relations for Asia at McDonald's during an LiveMint.
"The restaurants would remain shuttered during this period starting 9 May," he added. "We will see if any remedial action is necessary at these outlets," Sum said.
"McDonald's... intends to facilitate future growth by continuing to actively progress finding the right development licensee (DL) for the region. As this process continues and until the company has secured the right DL partner for the business, CPRL will remain owned by MIPL and its affiliate," said the company.
In 2013, Vikram Bakshi's over two-decade-long relationship with McDonald's went sour after the fast-food chain voted against him being the managing director of CPRL.
"With the transfer of ownership and management today, Mr. and Mrs. Bakshi end their association with CPRL and McDonald's. McDonald's acknowledges the significant work and contribution of Mr. Bakshi in establishing McDonald's restaurants in North and East India," McDonald's said in a statement.
"During the transition, MIPL (McDonald's India) will be focused on two key areas - providing employees with clarity and confidence in their future at McDonald's and leveraging McDonald's global system expertise to fortify high operating standards for our local customers," the company said.
The announcement comes after the two parties had on Monday informed the National Company Law Appellate Tribunal that they were working on an out-of-court settlement.
As part of the settlement, the two parties have also agreed to withdraw all litigation against each other, including a case in the London Court of International Arbitration.
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