Luckin Coffee ousted President Lu and appoints Guo as CEO

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Charles Lu ZhengyaoVCG | Getty Images

Luckin Coffee ousted co-founder and president Charles Zhengyao Lu and replaced him with Jinyi Guo, who will also be the CEO, the besieged coffee chain said on Monday.Guo was previously the interim CEO of the company.

The decision to replace Lu comes just weeks after Luckin said he would remain president after a proposal to remove him from internal fraud investigation failed to gain board approval. administration.

Earlier this month, the China-based coffee chain closed an internal investigation into fake sales of around $ 300 million annually, after which several of its managers proposed the ouster of Lu.

Luckin’s fortune, which directly competes with the American coffee Starbucks, has plunged since the revelation of the probe in April, the Nasdaq having suspended trading in its shares in June.

Lu, the majority shareholder of Luckin, is also the founder of the car rental firm Car and of the Chinese firm Ucar.

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

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