Nearly 500 Cafe Coffee Day (CCD) outlets across India have been shut down since April this year to counter falling profits and as part of the company's divestment process, CNBC-TV18 reported quoting sources.
The number of outlets of the coffee chain is said to have fallen from around 1,750 in Q4FY19 and 1,480 in Q1FY20 to about 1,200 to 1,300 now.
The outlets across different regions are being shut down to contain falling profitability at Coffee Day Global that houses Coffee Day Enterprises' coffee business.
Nearly 280 of these outlets were shuttered by Cafe Coffee Day in Q2FY20 alone, sources added.
In a BSE filing on November 13, Coffee Day Enterprises, the parent company of the CCD chain, announced a delay in the release of its second-quarter results. This, the company said, was due to the ongoing investigation into the books of the company and its subsidiaries.
The company had also delayed its first-quarter results earlier in August, following the demise of founder and coffee baron VG Siddhartha.
As per a regulatory filing on August 17, the company's debt at that point stood at around Rs 4,970 crore.
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