INDIA
The future of Cafe Coffee Day, India’s largest retail coffee chain, is in limbo following the death of company founder V.G. Siddhartha.
Siddhartha, who was embroiled in a complex battle with Indian government tax authorities, disappeared in late July. His body was found days later in the Netravati River near the city of Mangaluru. Even before the river discovery, a letter purportedly signed by Siddhartha was found. In it, the author wrote that he was receiving “a lot of harassment” from the government and that he took responsibility for “all mistakes.”
“The law should hold me and only me accountable,” the letter reportedly states. “My intention was never to cheat or mislead anybody. I have failed as an entrepreneur.”
A spokesperson from the coffee chain’s parent company, Coffee Day Enterprises, said in a statement that the company was cooperating with government officials and that Coffee Day Enterprises was “professionally managed and led by competent leadership.” S.V. Ranganath has been named interim chairman, according to a Reuters report. Nitin Bagmane is the interim chief operating officer.
Coffee Day’s vulnerable position makes it a target of takeover rumors. While it trims assets to reduce debt, companies including Coca-Cola are lining up for a chance to take control of the top coffee group in India. The stock price, meanwhile, has plummeted since Siddhartha’s death.