New Delhi, July 20
Homegrown espresso chain Cafe Coffee Day (CCD) has closed down round 280 shops within the first quarter of the present fiscal 12 months, citing profitability points and certain future enhance in bills, an organization assertion stated.
With these closures, the entire depend of its shops stood at 1,480 as on June 30, 2020.
Cafe Coffee Day is a model owned by Coffee Day Global, a step-down firm of Coffee Day Enterprises Ltd (CDEL).
The espresso chain additionally reported a decline in common gross sales per day (ASPD) to 15,445 in the course of the April-June quarter from 15,739 within the corresponding interval of the final fiscal.
However, the depend of its merchandising machines went as much as 59,115 items in Q1 FY20 from 49,397 in the identical quarter a 12 months in the past.
“Exports operations have been temporarily stopped due to lower margins and higher working capital requirement and around 280 outlets are closed during the quarter based on various factors including the profitability, future increase in major expenses,” the corporate stated.
It additional stated that the choice “will result in continuing the remaining cafes profitable and adding value to the company as a whole to continue as going concern”. CDEL has been paring its debt via the sale of non-core property after the loss of life of its promoter V G Siddhartha.
Earlier, in March this 12 months CDEL had introduced to repay Rs 1,644 crore to its 13 lenders after concluding a cope with Blackstone Group to promote its know-how enterprise park CDEL in September final 12 months had introduced the sale of its Global Village Tech Park in Bengaluru to international funding agency Blackstone and realty agency Salarpuria Sattva at an enterprising worth of Rs 2,700 crore.
It has additionally offered CDEL’s stake in IT agency Mindtree to L&T Infotech. —PTI