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Luckin Coffee’s Recovery Just Got Tougher After Firing CEO

  • Dismissal follows disclosure of 2.2 billion yuan in fake sales
  • Company pledged coffee makers as collateral for loan
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Watch: China's Luckin Coffee Inc. fired its chief executive officer and chief operating officer after an investigation into fabricated transactions. (Source: Bloomberg)
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The firings of Luckin Coffee Inc.’s chief executive officer and her lieutenant in an escalating scandal over faked transactions is another body blow for the Chinese chain, which expanded at breakneck speed trying to supplant Starbucks Corp. as the dominant barista in a booming coffee culture.

CEO Jenny Zhiya Qian and Chief Operating Officer Jian Liu were terminated and also resigned their board positions, according to a Tuesday filing by the U.S.-listed company. Six others either were suspended or placed on leave. Jinyi Guo, a board member and senior vice president, was named acting CEO.