Coffee Day Global Ltd on Monday said Malavika Hegde, the wife of its late founder VG Siddhartha, has been appointed as the company's Chief Executive Officer. Coffee Day Global Ltd runs a chain of Cafe Coffee Day restaurants in India. “Malavika Hegde, Director of the company, has been appointed as CEO of the company with effect from 7th December 2020,” Coffee Day Global Ltd said in a regulatory filing.
We will work to reduce the debt to a manageable level by selling a few more investments as I am committed to the company’s future
Malavika, 51, is the daughter of senior BJP leader and former External Affairs Minister S.M. Krishna. The change in leadership comes at a time when the Bengaluru-based firm has seen a sharp decline in its fortunes and piling losses that is suspected to have prompted Siddhartha to take his own life in July, 2019. Siddharth, who Co-Founded the country’s largest coffee retail chain Cafe Coffee Day, was found dead on July 31, 2019 near Mangaluru. He is reported to have committed suicide due to huge financial losses in his businesses.
The company also appointed three additional directors in the capacity of non-executive independent directors, CCD said in a filing to the Bombay Stock Exchange. C.H. Vasudhara Devi, Giri Devanur and Mohan Raghavendra Kondi are appointed as independent directors on the reconstituted board for five years from December 31, 2020 to December 30, 2025.
CCD, which once did roaring business through it’s over 500 outlets in India and abroad, has now plunged into debt, forcing the closure of these cafes that was thronged by youngsters and office goers. In a letter to the company’s 25,000 employees on July 24, Malavika said she was committed to the future of Coffee Day as a going concern. “We will work to reduce the debt to a manageable level by selling a few more investments as I am committed to the company’s future,” she said. The company has pared its debt to Rs. 3,200 crore from Rs. 7,200 crore by selling parts of its assets, including properties and shares in subsidiaries.