Reportedly dark Forest Furniture Company (DAFFCO), owned by Cafe coffee Day, has shut down operations at its factory in Karnataka's Chikkamagaluru with immediate effect. Meanwhile the decision was confirmed in a statement released by a company official on monday in which the tragic demise of coffee Day founder VG Siddartha and financial constraints were cited as reasons for the closure of the wood processing factory.
The company said in its statement "(After the) demise of the founder and promoter, the other existing management team made efforts to revive the unit. However, it is to be noted that the company was simultaneously going through acute financial constraints and also lack of orders. Hence, we regret to inform all the employees that business/manufacturing/all activities at the factory located at Chikkamagaluru stands closed with effect from 25 november 2019”.
VG siddhartha set up ABC, a coffee trading company in 1993 and the premises of DAFFCO is behind ABC's facility in Chikkamagaluru and he had pledged shares of Sivan Securities for taking loans. Perhaps with the factory shutting shop today, police personnel were present at ABC. As on march 31, 2019, the total debt of the group company coffee Day Enterprises stood at Rs 6,547 crore, which is nearly 2.5 times the net worth of Rs 2,529 crore.
