The so-called “Chinese Starbucks” goes bankrupt in the U.S.A.
After being fined US$180 million by the U.S. Financial Markets Authority for falsifying accounts, Luckin Coffee filed for bankruptcy protection in the U.S.A. in early February 2021. This decision affects negotiations with creditors, but operations remain open in China, where suppliers and staff will continue to be paid. Between April 2019 and January 2020, Luckin made more than US$300 million in false sales, reporting fake transactions with third parties. Its meteoric retail rise (4,500 points of sale opened in just three years) was driven by the financial support of foreign investors. Listed on the Nasdaq in 2019, two years after its creation, shares were delisted last July and the C.E.O. was sacked.