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Luckin Coffee Inc has ousted co-founder and president Charles Zhengyao Lu and replaced him with Jinyi Guo, who will also be the CEO, the coffee chain revealed Monday.
Guo was previously the interim CEO of the company.
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The move to replace Lu comes just weeks after Luckin said he would remain as president after a proposal to remove him, stemming from an internal fraud investigation, failed to get board approval.
| Heart | Security | Latest | Change | Change% |
|---|---|---|---|---|
| LKNCY | LUCK COFFEE | 2.90 | -0.82 | -22.04% |
Earlier this month, the China-based coffee chain concluded an internal investigation into fake annual sales of roughly $ 300 million, after which several of its directors proposed Lu’s expulsion.
CHAIRMAN OF THE LUCK COFFEE DISMISSED BY THE SHAREHOLDERS: REPORT
Directly competing with American coffee Starbucks, Fortunes of Luckin has plummeted since the investigation was unveiled in April, and the Nasdaq suspended trading in its shares in June.
Lu, Luckin’s controlling shareholder, is also the founder of car rental company Car Inc and Chinese transportation company Ucar Inc. The company said it removed four directors from its board, including Lu, and appointed two new directors after an extraordinary general meeting of shareholders on July 5 and a board of directors the following week.
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(Report of Sanjana Shivdas in Bangalore; Edition of Aditya Soni and Ramakrishnan M.)
