Cafe Coffee Day owned Dark Forest Furniture Company (DAFFCO) has closed operations at its factory in Chikkamagaluru, Karnataka.
In the closure notice, the company cited "acute financial constraints" and death of its promoter VG Siddhartha as reasons for shutting down the wood processing factory.
"On 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," DAFFCO said in the notice.
It said, "Hence, we regret to inform all the employees that business/manufacturing/all activities at the factory located at Chikmagalur stands closed with effect from Nov 25, 2019."
The company further said that all workmen at the factory have been terminated with effect from November 25 and their "payable will be paid in due course subject to availability of funds".
"As workmen are aware that the company is going through extreme financial difficulties the compensation payable will be paid in due course subject to availability of funds," the notice read.
In July this year, Siddartha was found dead after drowning in a river in Mangaluru. A purported letter written by him to his employees indicated that mounting financial debt, pressure from banks and tax authorities, and mistakes in business dealings drove him to end his life.
( With inputs from ANI )