We tried Qu Xiaomian, the new noodle chain from the founder of Luckin. It looks to us like it’s just another noodle shop in a crowded market.
Chinese beverage chain Luckin Coffee released its unaudited financial report for the first half of 2021, posting doubled revenue.
A US federal judge in Manhattan has passed Luckin Coffee’s debt restructuring plan for a $460 million bond due 2025. Court documents show that noteholders will get $320 million in cash and new debt. Luckin announced Tuesday that the plan has already won approval from creditors and the grand court of Cayman Islands, where it registered. US court approval means the plan can be implemented in the US. [Bloomberg Law]
A year after getting kicked off Nasdaq, former unicorn Luckin Coffee is still delivering cheap coffee in China.
Luckin Coffee is striving for a business turnaround and repairing its image after the April 2020 fraud scandal.
Luckin Coffee has reached a $175 million settlement in a shareholder class-action lawsuit over accounting fraud that broke out last April. Lawyers for the shareholders called the all-cash settlement an “excellent” result, Reuters reported on Wednesday. The settlement still requires approval by a US district judge, and by a Cayman Islands court. [Reuters]
The financial update indicates Luckin Coffee is taking the first step back to normalcy as it prepares for a comeback.
Leadership tumult at Luckin appears to be ongoing even as it moves forward with new business developments, including inviting franchise partners.
TikTok is planning to roll out a livestream shopping feature, coffee chain Luckin filed for bankruptcy in the US, Vipshop.com is fined RMB 3 million.
Pinduoduo is under fire again for deleting pictures from a user’s photo album without consent. Luckin opens up to franchises in lower-tier cities.