Luckin Coffee execs reportedly push for CEO Guo Jinyi’s ouster

Seven vice presidents, general managers, and core business directors of all branches signed their names in the letter.

In response, Guo wrote in an internal memo to Luckin Coffee staff, claiming that the letter was drafted by the firm’s former chairman Charles Lu and co-founder Jenny Qian. Guo also noted that some of the employees didn’t know the truth and were forced to sign the letter, the report said.

“I personally asked the board of directors to set up an investigation team as soon as possible to probe into the incident and restore the truth,” said Guo, adding that he will not interfere with the investigation.

Last year, Luckin Coffee was embroiled in a scandal about fabricated revenue. Following an internal investigation, the company confirmed that about US$300 million in revenue and around US$190 million in cost and expenses were fabricated in 2019. The company was delisted from the Nasdaq in June last year, and it ousted Lu and named Guo as the new CEO in the following month.

In December 2020, the company agreed to pay US regulators a US$180 million penalty to settle charges.