On Monday, Coffee Day Enterprises Ltd said it had named Malavika Hegde, from her previous position as a non-executive director, as chief executive officer.
Hegde is the wife of the late V.G.Siddhartha, the founder of Amalgamated Bean Coffee Trading Co. and Coffee Day Global Ltd. Ltd Ltd.
The change in leadership comes at a time when the Bengaluru-based company saw a sharp decline in its fortunes and piling losses that are suspected of causing Siddhartha in July 2019 to take his own life.
In the capacity of non-executive independent directors, the company has also named three additional directors, CCD said in a Bombay Stock Exchange filing.
The corporation said that C. Subject to shareholder approval, H. Vasudhara Devi, Giri Devanur and Mohan Raghavendra Kondi were appointed as additional directors as Non-Executive Independent Directors from 31 December 2020 until 30 December 2025.
“This intimation also fulfils the requirement of appointing Woman Independent Director under SEBI (LODR) (Amendment) Regulations, 2018,”
CCD, which once roared business through its more than 500 stores in India and abroad, has now sunk into debt, forcing the closure of these cafes that were packed with young people and office goers.
One of the biggest names in the coffee industry and his Amalgamated Bean Coffee Trading Co. was Siddhartha. Ltd and Coffee Day Global Ltd have directly and indirectly created employment for over 100,000 individuals.
But the 59-year-old was forced to take his own life last July by increasing debt and alleged abuse by income tax authorities, which sent the business he established into a downward spiral.
A court in the coffee-growing region of Chikmagalur is currently hearing a case of cheating over non-payment against Malavika Hegde and other senior executives in the business.
K.Nandish, a coffee grower in Karnataka’s Chikmagalur district, alleged that CCD was either avoiding paying him dues totalling over 45 lakhs or had appeared before the courts.
Cafe Coffee Day (CCD) shuts down 280 stores in the first quarter of the current fiscal year citing profitability issues, and likely future spending increases.
Cafe Coffee Day is a brand owned by the step-down company Coffee Day Enterprises Ltd (CDEL), Coffee Day Global.
The coffee chain also posted a decline in average sales per day (ASPD) from 15,739 in the corresponding period of the last fiscal year to 15,445 during the April-June quarter.