Luckin Coffee, Inc. manufactures coffee and operates coffee retail stores. The firm's new retail model is built upon mobile apps and store network. The Mobile Apps: Mobile apps cover the entire customer purchase process. The Store Network: Its pick-up stores have limited seating and are typically located in areas with high demand for coffee, such as office buildings, commercial areas and university campuses. It procures coffee machines and coffee condiments from renowned global suppliers such as Schaerer. The company was founded by Zhi Ya Qian in October 2017 and is headquartered in Fujian, China.
The move by the troubled Beijing-based coffee chain comes follows a request by the majority of the directors based on a special committee's finding that the CEO and COO were involved in fabricating sales numbers. Luckin said the committee found that 2019 sales were inflated by 2.12 billion yuan ($300.1 million), and costs and expenses by 1.34 yuan billion ($189.7 million). Fortunes of Luckin, which directly competes with U.S.coffeehouse Starbucks, have nosedived since the probe was disclosed in April, ending up with the Nasdaq suspending the trading in its shares on Monday.
Luckin Coffee Inc. announced the "substantial completion" of the internal investigation into financial misconduct on Wednesday, finding that the company's 2019 annual revenue was inflated by about RMB 2.12 billion (approximately $300 million) spread across the second, third and fourth quarters. "Evidence discovered to date demonstrates that the company's former chief executive officer, Ms. Jenny Zhiya Qian, former chief operating officer, Mr. Jian Liu and certain employees reporting to them participated in the fabricated transactions and that the funds supporting the fabricated transactions were funneled to the company through a number of third parties associated with the company employees and/or related parties," Luckin said in a statement. Luckin previousl...
Luckin Coffee Inc. (the “Company”) (LKNCY) announced that its Special Committee of the Board of Directors (the “Special Committee”), with the assistance of its advisors, Kirkland & Ellis International LLP and FTI Consulting, has substantially completed its independent internal investigation (the “Internal Investigation”) into the issues disclosed in the press release issued by the Company on April 2, 2020. The Special Committee was formed on March 19, 2020 and authorized by the Board of Directors (the “Board”) to access documents, records and information of the Company, and to conduct interviews with any employee, officer and director, as the Special Committee deemed appropriate.
Luckin Coffee Inc. (NASDAQ: LK ) Chairman and board members are trying to oust each other in the aftermath of the accounting scandal, as revealed in multiple filings with the United States Securities and Exchange Commission. What Happened The Chinese coffee chain company's board of directors voted to require Chairman and Director Charles Zhengyao Lu to resign from his role, and a meeting will be … Full story available on Benzinga.com