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KAfe accused of delaying debt payment

Released at: 17:25, 29/06/2016

KAfe accused of delaying debt payment

Photo: Duc Anh

As Gia Tuong Company makes claim, KAfe says amount of debt is still to be settled.

by Thu Hoang

Vietnamese F&B startup the KAfe Group has been accused by the Gia Tuong Company of delaying debt repayments of more than VND4 billion ($179,000).

“We have sent written documents and made phone calls to ask the CEO of KAfe, Ms. Dao Chi Anh, to work on resolving the debts but have received no response,” Gia Tuong told local media.

A representative from KAfe confirmed with VET that it has debts with Gia Tuong after the two companies ceased their cooperation earlier this year. “The debts have not been paid as the two parties have failed to agree on the amount,” she said. “Gia Tuong has not cooperated with KAfe in clarifying the debt.”

KAfe is working with local authorities to resolve the issue legally as soon as possible. “Solving problems arising from disputed debts is not complicated if there is cooperation from both sides,” KAfe’s representative said, while acknowledging that it has made many personnel changes. “These changes have created difficulties for the two parties in resolving the debts,” she added.

Gia Tuong’s accusations were focused on Ms. Dao Chi Anh, claiming that “Ms. Anh has neglected the debts”, even though KAfe’s representative has contacted Gia Tuong many times in an effort to resolve the problem.

Founded in 2013, the KAfe Group Limited was the first urban fusion cafe chain in Vietnam offering fresh, affordable, and quality international casual dining for affluent consumers.

It secured a $5.5 million Cassia Investments-led Series A funding arrangement in October last year and acquired local cupcake chain Mint Cupcakes Creations (MCC) early this year.

The company currently operates 19 outlets in Hanoi and Ho Chi Minh City under four brands - The KAfe, KAfe Village, KAfe Box, and The Burger Box, as well as its beverage merchandise The KAfe Cup, The KAfe Pressed, and MCC.

This year the Group plans to continue to expand the KAfe chain to more cities while providing new models like Burger Box, KAfe Box, and Mint in Ho Chi Minh City.

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