CBS planning to walk away from advert contract

[WatcherZero]

CBS Outdoor, the company that won the £1bn concession to run advertising on the London Underground from 2006-2015 is planning to walk away just a few months before the Olympics in a dispute over the London Underground upgrade works. The company alleges the delay in carrying out the upgrades prevented it from carrying out its own upgrades due to delays in access rights and is sueing for lost revenue. It has asked the High Court to rule that LU has caused an adverse event and allow termination of the contract. While it has been trying to recover lost revenue since 2007 it alleges that LU has consistently failed to engage and address its concerns.

Theres apparantly a clause in the contract that allows them to recover lost revenue if the upgrade to digital adverts takes longer than two years due to LU failings but LU is refusing to honour the clause. LU is contesting the termination of the contract.

http://www.brandrepublic.com/news/1087020/cbs-moves-terminate-1bn-london-underground-ad-contract/

http://www.brandrepublic.com/news/1087067/tfl-denies-cbs-end-1bn-underground-contract-olympics/