Starbucks rival Luckin Coffee sacks CEO, COO after accounting scandal
Luckin Coffee, the Chinese homegrown rival to Starbucks, said Tuesday that it has sacked its CEO and COO following internal investigations into sales fraud.
Qian Zhiya, the company's former chief executive, along with Liu Jian, its former chief operating officer, resigned from Luckin Coffee's board. The changes went into effect on Monday.
The board appointed Guo Jinyi , board member and senior vice president, as the acting chief executive; Cao Wenbao as the head of store operations and customer service; and Wu Gang as the head of its strategic partnerships and supply chain management.
Luckin said it is cooperating with regulatory agencies in both the United States and China and responding to their inquiries. The investigation into the company was initiated last month.
The coffee chain's stocks plummeted by more than 80 percent on April 2, the day the probe was revealed, leading to a halt in trade since April 7. There is no time limit for how long a stock can remain suspended for pending news.