The rival in China of the American giant Starbucks announced on Saturday its withdrawal from the Nasdaq, after a massive fraud case which caused a lot of noise.
–It’s the end of the American dream for the ambitious Chinese chain Luckin Coffee. The rival in China of the American giant Starbucks announced on Saturday its withdrawal from the Nasdaq, after a massive fraud case which caused a lot of noise. A forced downturn that comes a year after its fanfare on the American Stock Exchange in May 2019. Launched two years earlier, the company, which had been valued at some $ 4 billion and had raised 561 million, had illustrated by a remarkable stock market journey, before his descent into hell last April.
The group, on which large institutions like Goldman Sachs or Louis Dreyfus Company had bet, had then revealed that one of its leaders was accused of having falsified the sales figure in 2019 to the tune of 310 million dollars, that is to say half of sales. A revelation to the effect of a bomb: the action had then dropped by more than 70%, resulting in the suspension of trade for several weeks. Until, in mid-May, the Nasdaq begs Luckin to leave the coast, due to “Public interest concerns raised by fake transactions revealed by society”. While apologizing for “The deplorable consequences of the incident”, the Chinese then wished to appeal this decision. But without success. “As of June 29, Luckin Coffee will suspend its activities on the Nasdaq and will request the withdrawal of the rating “, he announced.
With aggressive marketing and prepaid coffees via a mobile application, the ex-unicorn has managed, with 4,500 points of sale, to double its competitor Starbucks
With aggressive marketing and prepaid coffees via a mobile application, the ex-unicorn has managed, with 4,500 outlets, to double its competitor Starbucks. Which had made it possible to convert the Chinese to coffee … Today, history is turning once again, with, what is more, the announced departure of the Chinese CEO.
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