FridayOL

Madrid, Spain – The Madrid City Council has taken decisive action, revoking the licenses for two restaurants previously held by the Aldama group. The decision stems from the group's unauthorized subletting of these establishments to third parties, a clear violation of the terms of their original concession agreement.

A Controversial Award and Subsequent Breach

The Aldama group secured the awarding of these two prime restaurant locations in 2013 through a process that has been described as a “direct award” (adjudicación a dedo). The agreement stipulated an annual fee of €91,000 to the City Council. However, the situation took a turn in 2021 when Aldama reportedly sublet the restaurants without obtaining the necessary permission from the council. Sources indicate the subletting was done for a significantly higher rate – €240,000 annually, highlighting a potential profit motive behind the unauthorized action.

City Council's Response and Legal Grounds

The City Council's decision to revoke the licenses is based on a breach of contract. The original concession agreement explicitly prohibits subletting without prior written consent. By failing to adhere to this clause, Aldama forfeited their right to operate the restaurants under the existing terms.

“We cannot tolerate actions that undermine the integrity of our concession process and deprive the city of the agreed-upon revenue,” stated a spokesperson for the Madrid City Council. “The unauthorized subletting constitutes a serious violation of the agreement, and we have a responsibility to protect the interests of the citizens of Madrid.”

Impact and Future Implications

The revocation of the licenses will likely have a significant impact on the Aldama group and the restaurants themselves. The City Council is now expected to initiate a new bidding process to award the licenses to new operators. This may attract new investment and potentially offer better value to the city.

This case serves as a cautionary tale for businesses operating under concession agreements. Strict adherence to the terms of the agreement is crucial, and any deviations must be properly authorized to avoid severe consequences. The City Council’s swift and decisive action sends a clear message that such violations will not be tolerated.

Further Developments

The Aldama group has yet to release an official statement regarding the revocation of their licenses. Legal experts anticipate potential challenges to the council’s decision, but the City Council remains confident in the legality of its actions based on the breach of contract.