Founder of Cafe Coffee Day, the largest coffee chain in India, the disappearance of VG Siddhartha has a social media full of speculations. In the letter sent by the businessman to CCD’s board and staff, Siddhartha said he was fully responsible for the company’s financial position. His letter also states that he was put under pressure by a private equity firm as well as the former general manager of the income tax department as VG Siddhartha Letter.
The message ends by saying that his intention is not to deceive or mislead anyone. “I failed as an entrepreneur,” the letter states.
In his letter to the shareholders, VG Siddhartha stated tremendous pressure from a private equity partner and lenders led to a liquidity crisis and made him “give up”. Founder of the Cafe Coffee Day (CCD) is missing since the evening of July 29 as VG Siddhartha Letter.
He was referring to two cases – a private equity partner forcing him to buy back shares and problems from income tax that prevented him from selling Mindtree shares amid the subsequent takeover battle between Mindtree and L & T.
After 37 years, with a strong commitment to hard work, having directly created 30,000 jobs in our companies and subsidiaries, as well as 20,000 other jobs in the technology company, it has become a major shareholder since its inception. I failed to create the right profitable business model despite my best.
I would say I made it all. I’m sorry to drop all the people who put their trust in me. I fought for a long time but today I gave in because I could not take more pressure from a private equity partner, forcing me to buy back the stock, a treatment I partially completed six months ago by borrowing a large sum of money from a friend. Excessive pressure from other lenders leads to this situation.