The cloud of bankruptcy is hovering over the popular cafe chain – Café Coffee Day! This has come to the fore after Coffee Day Enterprises Ltd had disclosed a debt of Rs 280, according to a report in Business Standard citing an exchange filing in March quarter. Notably, the CDEL owns the Coffee Day or CCD, the popular hangout zone. In a major development, the lenders to the CDEL are mulling sending the firm to National Company Law Tribunal in order to find debt resolution. The CDEL has revealed that it did default on loans in March 2021 quarter. Their latest debt size stood at Rs 280 crore, the BS report says.
This has come aftermath of the company’s strategy for selling asset failed to gain any significant headway, the BS report says. The CDEL has cited that there has been delay in debt servicing due to liquidity crisis, the BS report says.
Café Coffee Day is a part of Coffee Day Global Limited, has been one of favourite hangouts for coffee and conversations in India. Popularly known as CCD, the company opened its first cafe in 1996 at Brigade Road in Bangalore.
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The company claims that it is the largest organised retail cafe chain in the country and also has presence in Austria, Czech Republic and Malaysia.
Apart from the cafe chain, Coffee Day is involved in export. Coffee Day Exports is one of the largest exporters of green coffee in India, since 1999. It exports to the Middle East, Europe and Japan. It has invested in research and development and applied the learning successfully to improve the promotion of various coffee blends and augment its exports.
In 2008, Coffee Day Global Limited ventured into the hospitality business. Coffee Day Hotels & Resorts was formed as a subsidiary of Coffee Day Global Limited, the Chikmagalur resort of The Serai was declared open.
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