BackCoffee Day Enterprises appoints Malavika Hegde, the founder's wife, as new CEO
The change in leadership comes at a time when the Bengaluru-based firm has seen a sharp decline in its fortunes and piling lossesThe company also appointed three additional directors in the capacity of non-executive independent directors
PremiumCoffee Day Enterprises Ltd on Monday said it has appointed Malavika Hegde as chief executive officer, from her earlier role as non-executive director.
Hegde is the wife of late V.G.Siddhartha, the founder of Coffee Day Global Ltd and Amalgamated Bean Coffee Trading Co. Ltd.
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.
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.
The company said that C. H. Vasudhara Devi, Giri Devanur and Mohan Raghavendra Kondi have been appointed as additional directors in the capacity of Non-Executive Independent Directors from 31 December 2020 up till 30 December 2025 subject to the approval of shareholders.
"This intimation also fulfills the requirement of appointing Woman Independent Director pursuant to SEBI (LODR) (Amendment) Regulations, 2018," according to the filing.
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.
Siddhartha was one of the biggest names in the coffee industry and his Amalgamated Bean Coffee Trading Co. Ltd and Coffee Day Global Ltd had provided jobs for over 100,000 people directly and indirectly. But rising debt and alleged harassment by income tax officials forced the 59-year old to take his own life last July that sent the company he founded into a downward spiral.
A court in the coffee growing region of Chikmagaluru is presently hearing a case of cheating against Malavika Hegde and other senior executives in the firm over non-payment of does.
K.Nandish, a coffee grower in Chikmagalur district of Karnataka has alleged that CCD continues to evade paying him dues totalling to over ₹45 lakhs nor had appeared before the courts.
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