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India’s leading domestic coffee chain☕, Cafe Coffee Day (CCD) is going through very tough times😣.

The company had to close down nearly 280 of its outlets in the first quarter🗓️ of the current financial year.

As per the company, profitability issues and likely future rise in expenses😟 were the factors behind this move.

Notably, the company closed ☝️about 500 cafes during April-November 2019 due to the same reasons.

More worries on its mind!

CCD has reported a decline⤵️ in average sales per day (ASPD) to 15,445 during the April-June quarter from 15,739 in the corresponding period of the last fiscal.

The company has also temporarily stopped its exports🚢 due to lower margins and higher working capital requirement.

It expects this move will help it🙂 in running the remaining of its profitable outlets.

Clearing the debt burden

CCD has been badly struggling after the untimely death😔 of its founder, VG Siddhartha last year.

It had a debt obligation of Rs. 5,000 crores at the time.

The company has been selling its non-core assets to pay back that debt.

It repaid Rs. 1,644 crore to 13 of its lenders in March this year after selling its technology business park🏢.

Last year, it sold🤝 its Global Village Tech Park in Bengaluru for Rs. 2,700 crore for the same reason.

By admin

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