Get the app today! Download iPhone App Download Android App

SUBSCRIBE

Battered Luckin Coffee Emerges From Bankruptcy Proceedings

Published on Apr 19 2022 9:53 AM in Restaurant tagged: Luckin Coffee

Battered Luckin Coffee Emerges From Bankruptcy Proceedings

Luckin Coffee Inc LC0Ay.MULKNCY.PK has said that it has emerged from bankruptcy proceedings, two years after an accounting fraud derailed the coffee chain's business.

Details

Founded in 2017, Xiamen-based Luckin had positioned itself as a homegrown challenger to US coffee giant Starbucks Corp SBUX.O, but the much-hyped company almost collapsed in 2020 after findings that approximately 2.2 billion yuan ($337.31 million) in 2019 sales was fabricated.

Top management changes and hundreds of millions of dollars in fines later, Luckin said that it had restructured its financial indebtedness in the United States and was now positioned for sustainable growth and profitability.

Jump In Quarterly Revenue

In March, Luckin reported a near 81% jump in quarterly revenue and operating losses of approximately 120.8 million renminbi ($19.0 million).

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

Share on Facebook Share on Twitter Share on LinkedIn Share via Email