Recent events
Recent events tied to this brand in public sources.
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2022
Centurium-led consortium completes Luckin Coffee share purchase
A buyer consortium led by Centurium Capital completed the purchase of 383,425,748 Class A ordinary shares in Luckin Coffee for total consideration of more than US$400 million. After the transaction, Centurium held over 30% of Luckin's equity and more than 50% of its voting rights, becoming its controlling shareholder.
2021
Luckin Coffee enters restructuring support agreement
Luckin Coffee entered into a restructuring support agreement with holders of a majority of its $460 million convertible senior notes due 2025. The restructuring was expected to provide those noteholders recovery of approximately 91%–96% of par value.
2021
Luckin Coffee seeks Chapter 15 bankruptcy protection
Luckin Coffee said it was seeking protection under Chapter 15 of the U.S. Bankruptcy Code to facilitate the restructuring of its financial obligations. The article also reports that Luckin had previously admitted to accounting fraud; that background is not a separate event here.
2020
Luckin Coffee agrees to SEC settlement
Luckin Coffee agreed to pay $180 million to settle fraud allegations brought by the U.S. Securities and Exchange Commission. The article also describes Chinese authorities’ findings of fabricated sales metrics as background.
2020
China's market regulator fines Luckin Coffee companies for unfair competition
China's State Administration for Market Regulation imposed administrative penalties on Luckin Coffee (China) Co., Ltd., Luckin Coffee (Beijing) Co., Ltd. and three other companies for unfair competition. The penalty notice said the companies used fabricated transactions and other methods to inflate revenue and produced 123 million fake coffee-coupon orders; each of the five companies was fined RMB 2 million.
2020
Luckin responds to penalties and says it corrected issues
After the penalties, Luckin Coffee (Beijing) said it respected and would implement the authorities' decision, had fully corrected the relevant issues, and would further standardize its business activities.
2020
Regulators penalize Luckin Coffee for false advertising
Chinese market regulators imposed administrative penalties totaling 61 million yuan on Luckin Coffee-related companies and other firms. Authorities said Luckin had inflated sales and other business metrics and publicized false marketing data, misleading the public.
2020
Luckin Coffee appoints independent auditor amid accounting-fraud findings
Luckin Coffee announced the appointment of Marcum Bernstein & Pinchuk as its independent auditor, effective September 17, 2020, after authorities described fabricated transactions and inflated revenue, costs, and expenses by Luckin's domestic operating entity and related parties.
2020
Luckin Coffee independent directors resign
Luckin Coffee announced that it had received resignation letters from independent directors Yang Jie and Zeng Ying, effective immediately.
2020
Chinese market regulator investigates Luckin Coffee over alleged unfair competition
China’s State Administration for Market Regulation said it had opened an investigation into Luckin Coffee over alleged false transactions and other unfair competition, and that the investigation found Luckin entities had used false transactions to fabricate performance and promote it publicly.
2020
Luckin Coffee says regulatory action will not affect store operations
After government departments announced penalties or investigations, Luckin Coffee said the issues would not affect store operations, that company and store operations were normal, and that employee wages would be paid on time. It also said its workforce was generally stable.
2020
Chinese authorities investigate and pursue action over Luckin Coffee's financial falsification
The article reported that Chinese authorities announced penalties or investigations concerning Luckin Coffee. The market regulator and local authorities were taking action over alleged unlawful conduct, while the Ministry of Finance said it would impose administrative penalties over financial falsification.
2020
Luckin Coffee announces planned board reorganization
Luckin Coffee announced that it would reorganize its board on July 5 and discuss removing three independent directors and the chairman from their board appointments, as well as possible appointments of two new independent directors.
2020
Luckin Coffee continues internal investigation into alleged financial fraud
In response to reporting alleging false transactions before its IPO, Luckin Coffee said its board special committee was continuing an internal investigation, assessing the effect of financial fraud on previously published quarterly reports, and cooperating with inquiries from Chinese and U.S. regulators. The cited allegations are not presented as a regulatory or court determination.
2020
Luckin Coffee removes light-meal products from its app
Luckin Coffee's app no longer listed products such as meat rolls, salads and sandwiches in its healthy light-meal section.
2020
Luckin Coffee confirms staffing changes in some departments
In response to layoff rumors, Luckin Coffee said some employees in certain departments were being transferred or subject to staffing optimization, and some departures were normal employee turnover linked mainly to its 2019 performance process. The company said departing employees would be compensated according to national law.
2020
Investors sue Luckin Coffee seeking losses
Fourteen overseas investors sued Luckin Coffee in Hong Kong, seeking to recover approximately US$155.7 million in losses. The case was heard at the Hong Kong High Court on May 15, 2020; the article said no judgment had yet been made public.
2020
Luckin Coffee reports planned Beijing store closures
Luckin Coffee said it was optimizing its Beijing store network, including closing, consolidating or transferring some underperforming or overlapping-coverage stores, while continuing to open stores. A report cited in the article said about 80 Beijing stores were expected to close.
2020
Luckin Coffee appoints an acting CEO and two board members
Luckin Coffee’s board appointed Guo Jinyi as acting CEO and Cao Wenbao and Wu Gang as board members.
2020
Luckin Coffee removes its CEO and COO
Luckin Coffee’s board terminated Qian Zhiya and Liu Jian from their CEO and COO positions and requested their resignations from the board; the board received their resignations. The report says the employees were involved in or aware of fabricated transactions.