In a recent development, it has been reported that Cafe Day Global, the main operator of the popular cafe chain Cafe Coffee Day, has entered into bankruptcy proceedings. The initiation of the corporate insolvency process came after IndusInd Bank filed a plea with the National Company Law Tribunal (NCLT). Following the breakdown of negotiations between the company and IndusInd Bank, the Bengaluru chapter of NCLT admitted Cafe Day Global for the corporate insolvency process. However, Cafe Day Global has not officially confirmed or denied the bankruptcy rumors.
Tatva Legal and Skanda Legal have been appointed as counsels for the respondent and applicant in this matter, according to the NCLT’s official record. Cafe Day Global, founded in 1993 through Coffee Day Global Ltd, operates cafes in more than 200 cities across India and is involved in various aspects related to coffee, from procurement to roasting. The company has an extensive portfolio, including businesses in hospitality, logistics, SEZs (Special Economic Zones), financial services, and more.
Earlier in January of the same year, the company faced a fine of Rs 26 crore from market regulator SEBI (Securities and Exchange Board of India) due to fund diversion from subsidiaries to a firm related to promoters. Cafe Day Global, a subsidiary of listed Coffee Day Enterprises, was promoted by the late VG Siddhartha. According to the latest media reports citing the annual company report from March 2022, the company had an outstanding debt of Rs 67.3 crore owed to IndusInd Bank.
Cafe Coffee Day, also known as CCD, is a coffeehouse chain with a global presence, based in Bengaluru, Karnataka, India. It operates as a subsidiary of Coffee Day Enterprises Limited. CCD has expanded its reach to various international locations, providing coffee enthusiasts with a delightful experience.
The situation surrounding Cafe Day Global’s bankruptcy process is being closely monitored, and further details are yet to emerge. As the process unfolds, stakeholders and coffee lovers await official statements from the company to gain a clearer understanding of the situation and its potential impact on the popular cafe chain.
