Luckin Coffee ousts chairman

BEIJING (AFP) – China’s would-be Starbucks rival Luckin Coffee has removed its co-founder and chairman after a scandal involving fake sales figures that resulted in the company being delisted from the US Nasdaq and the ouster of two top executives.

Luckin’s billionaire founder Charles Zhengyao Lu has been replaced as chairman by Jinyi Guo, previously the acting CEO, the embattled coffee chain said in a statement on Monday. The announcement came days after company directors had voted to keep Lu on the board despite an internal investigation that found the company had inflated its 2019 sales revenue by some CNY2.12 billion (US311 million).

Luckin was delisted from Nasdaq earlier this month after suspending trading on June 29, having been asked to do so by the exchange.