Luckin Coffee ousts chairman Lu, names Guo as CEO

FILE PHOTO: A Luckin Coffee logo is seen at a closed store in Beijing, following the novel coronavirus disease (COVID-19) outbreak, China, April 16, 2020. REUTERS/Tingshu Wang

Luckin Coffee Inc has ousted co-founder and chairman Charles Zhengyao Lu and replaced him with Jinyi Guo, who will also be the chief executive officer, the embattled coffee chain disclosed on Monday.

Guo was previously the acting CEO of the company.

The move to replace Lu comes just weeks after Luckin said he would stay on as chairman after a proposal to oust him, stemming from an internal fraud investigation, failed to get board approval.

Earlier this month, the China-based coffee chain wound up an internal probe into fake annual sales of about $300 million, following which several of its directors proposed the ousting of Lu.

Fortunes of Luckin, which directly competes with U.S. coffeehouse Starbucks <SBUX.O>, have nosedived since the probe was disclosed in April, with the Nasdaq suspending trading in its shares in June.

Lu, the controlling shareholder of Luckin, is also the founder of auto-rental firm Car Inc and Chinese ride-hailing firm Ucar Inc.

The company said it removed four directors from its board, including Lu, and named two new directors after an extraordinary general meeting of shareholders on July 5 and a board meeting the following week.

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.