Categories: Business

Café Coffee Day closed its 280 outlets in April-June; steps were taken as profit margins and expenses increased

Photo: CCD

Cafe Coffee Day shuts 280 more outlets in Apr-June

New Delhi Domestic coffee chain Cafe Coffee Day (CCD) closed 280 outlets in the first quarter of the current financial year citing profit-related issues and anticipating increased spending in the future. The company said in a statement that with it the total number of its outlets decreased to 1,480 on 30 June 2020.

The Cafe Coffee Day brand is owned by Coffee Day Global, a subsidiary of Coffee Day Enterprises Limited (CDEL). The coffee chain reported that its average daily sales also fell to 15,445 during the April-June quarter from 15,739 in the same period last fiscal. However, the number of its vending machines increased to 59,115 in the quarter under review, from 49,397 in the year-ago period.

The company said the export business has also been temporarily suspended due to low margins and high working capital requirement and has permanently closed 280 outlets. After the death of promoter VG Siddhartha, the company is trying to reduce its debt by selling non-core assets.

In March this year, CDEL announced the return of Rs.1644 crore to 13 lenders after selling its technology business park CDEL to Blackstone Group. The company has sold its IT park for Rs 2700 crore. CDEL has also sold its entire stake in IT company Mindtree to L&T Infotech.

This post was published on July 20, 2020 3:45 pm

Content Team

Recent Posts

ICICI Bank raised Rs 15,000 crore from QIP, issued 41.89 crore shares to investors at Rs 358

Photo: BUSINESS INSIDER INDIA ICICI Bank closes QIP; garners Rs 15,000 cr from share sale new Delhi. ICICI Bank, the…

Jio-RCom spectrum sharing deal not connected with AGR liability | Jio-RCom spectrum partnership deal not linked to AGR liability, will not pay

Photo: YAHOO FINANCE Jio-RCom spectrum sharing deal not connected with AGR liability new Delhi. Reliance Jio's four-year-old telecom spectrum partnership…

Google Pixel 5 May Only Launch in XL Variant will be launched in India this year, only Google Pixel XL, phone will not be launched on small screen

Photo: GADGET 360 Google Pixel 5 May Only Launch in XL Variant San Francisco. Google is reportedly planning to launch…