Indian coffeehouse chain Café Coffee Day faces bankruptcy
Cafe Coffee Day (CCD)
Popular Indian coffeehouse chain Café Coffee Day’s operator Coffee Day Global has been admitted for corporate insolvency by India’s National Company Law Tribunal, anEconomic Times report said on Monday.
Coffee Day Global was admitted for insolvency proceedings based on a petition filed by IndusInd Bank. However, the Coffee Day Group has still not released an official statement on the matter.
Coffee Day Enterprises, which owns Coffee Day Global , was promoted by the late VG Siddhartha, who committed suicide in 2019. According to reports, his suicide note addressed to the board of directors and the Coffee Day family revealed he was under heavy debt burden.
The company’s recent annual report indicated that on March 31, 2022, its outstanding debt from IndusInd Bank stood at over $8 million.
Reports said that the company was dragged to the court after discussions between the Coffee Day Group and IndusInd Bank broke down.
Café Coffee Day, a subsidiary of Coffee Day Global Limited, was founded in 1996 by VG Siddhartha. With its headquarters in Bengaluru, Café Coffee Day has over 1,000 outlets across India.