Luckin Coffee Delisted From from Stock Exchange, and Yet...

It’s been a rough year for the embattled China-based and American-listed coffee chain, which just announced that the NASDAQ, a US stock market index, had sent an additional written notice to inform the company of its intent to delist it. 

All trading for Luckin shares were suspended on June 29, following news of alleged frauds for having inflated revenues and expenses by hundreds of millions of dollars in 2019, the year the company filed for its IPO.

And yet, despite its Icarus-like descent back to Earth shortly after having experienced exponential growth, more than 4,000 Luckin stores remain open and fully operating throughout China.  

What gives?

It was later revealed that Luckin’s board of directions have officially asked Charles Zhengyao Lu to step down as Director and Chairman of the company, which will be put to a vote in the next shareholder meeting on July 5.

The coffee chain supposedly suffered from the recent COVID-19 outbreak and internal investigations, which it used as a means to justify its failure to file its Form 20-F for the period ended December 31, 2019, as demanded by NASDAQ.

Under severe fire for the foreseeable future, Luckin reached out to its communities on social media, communicating its sincere appreciation for “the support of [their] customers” and regret for how things turned out over the last year.

What do you make of Luckin’s rise-and-fall story? Had you ever ordered from them before? What do you think will happen to all its stores in China? 

Source: weibo

Editor: Crystal H

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