Luckin Coffee has filed for bankruptcy in the United States.
Luckin Coffee currently has 4,000 coffee bars in China and is considered the strongest Starbucks rival there. The company, which is listed in the US, has now filed for bankruptcy. Luckin Coffee wants to use the bankruptcy process to push restructuring forward. The chain had come into the sights of the stock exchange investigators, since falsified accounts were made public in the spring.
All shops remain Farther open and there will be no significant impact on day-to-day business, according to an official statement. The company continues to “comply with trade obligations in the normal course of business, including paying suppliers, vendors and employees.”
An investigation had shown that from the second quarter of 2019 to the fourth quarter of 2019 fake sales of 2.2 billion yuan reported, around 40 percent of estimated annual sales. In addition, costs and expenses were entered significantly excessively in the same period. –
