Luckin Coffee sacks CEO, COO amidst accounting scandal
Jinyi Guo was named the chain’s acting chief executive.
Luckin Coffee has fired its CEO and COO as part of an internal investigation into sales fraud, the company said in a statement.
Jenny Zhiya Qian, the coffee chain’s former CEO, and Jian Liu, its former COO, also stepped down from the company’s board.
Jinyi Guo, a board member and a senior vice president in the company, was appointed as Luckin’s acting chief executive.
Last April, the coffee chain disclosed Liu was discovered to have fabricated 2019 sales by about 2.2 billion yuan (US$310 million). The chain previously said net sales for the first nine months of 2019 were 2.9 billion yuan (US$413 million).
The company then placed six other employees, who were either involved in or had knowledge of the fraud, on suspension or leave.
Luckin said it is cooperating with regulatory agencies in both the United States and China.
