Luckin Coffee Inc LC0Ay.MU, LKNCY.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).
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