Derailed Luckin Coffee Back on Track

The former fast-growing coffee chain fought a long battle ever since the accounting fraud in 2020


Teckwai Saw

13 Apr, 2022

Derailed Luckin Coffee Back on Track | BEAMSTART News

Chinese coffee startup, Luckin Coffee announced it has successfully restructured its financial debt and has emerged from bankruptcy proceedings.

It has been two years since the tech-enabled coffeehouse chain was found to have fabricated millions of dollars in revenue which as a result, derailed its business.

The Xiamen-based company, which filed for bankruptcy and is publicly traded over the counter in the US as well, has new investors and stated it is well positioned for long term growth and better financial stability.

It is reported that Luckin plans to relist its shares in the US by the end of this year.

Last month, Luckin reported a 81% increase in quarterly revenue and operating losses of about CNY 120.8 million (~US$19 million).

Community Q&A

“Today marks a new beginning for Luckin Coffee. We are confident that Luckin Coffee is well positioned for long term growth and creation of stakeholder value,” said Guo Jinyi, chairman and chief executive officer of Luckin Coffee.

History of Luckin Coffee

  • Luckin Coffee was founded in 2017 and had positioned itself as a home-grown competitor to US coffeehouse chain, Starbucks.
  • The company opened its first outlet in 2017 and operated more than 4,500 tech-fueled coffee shops in the country by the end of 2019.
  • The company went public in 2019, raising US$864 million in equity as well as debt from investors.
  • In April 2020, Luckin revealed that it had fabricated its 2019 sales revenue by up to US$310 million.
  • The news resulted in its shares crashing and several top executives being fired.
  • On 29 June 2020, Luckin shares on Nasdaq was suspended and delisted but it currently trades over the counter.

Already a member?

Sign in to read this article & enjoy the following:

  • Access to members-onnly content, events, and more
  • Connect with a global community of CEOs, Business Owners, and more.
  • Free Business Feature & Profile Listing
  • Post Unlimited Jobs & Hire Talent Effectively
  • Connect with Investors and Fundraise
  • Search through entire members, companies, and investors directory
  • and lots more!

Latest Jobs

Director of People

Rose Rocket

Toronto, Canada, United States

Full Time

Salary Undisclosed

Senior Product Manager

Vahan

Bengaluru, India, United States

Full Time

USD 2500000 — USD 4500000 yearly

Revenue Director (Go-to-market areas)

Pulppo

Mexico City, Mexico, United States

Full Time

USD 50000 — USD 80000 yearly

🤝🏼 Talent Lead

Replo

San Francisco, United States

Full Time

USD 100000 — USD 130000 yearly

People Partner Intern

Finku

Jakarta, Indonesia, United States

Internship

Salary Undisclosed

Full Stack Engineer

kapa.ai

United States

Full Time

USD 80000 — USD 119998 yearly

JavaScript Automation Intern

HiOperator

San Francisco, United States

Internship

USD 17 — USD 25 yearly

Supplier Quality Engineer, Energy Storage

Moxion Power Co.

Richmond, CA, United States

Full Time

Salary Undisclosed

Senior Product Designer, Graphing

BioRender

Toronto, Canada, United States

Full Time

USD 130 — USD 240 yearly

Snr. Software Engineer (Backend)

SkyLink

New York, United States

Full Time

USD 125000 — USD 155000 yearly

BEAMSTART is a hub for everything Startups, Entrepreneurship, and Innovation. Connect with a global community of people, and stay updated with the latest startup jobs, news, and discussions.

 
© 2016 - 2024 BEAMSTART. All Rights Reserved (Legal).