Tarnished Luckin Coffee lands $250 investment

April 16, 2021

China’s Luckin Coffee Inc. said it has signed an investment agreement with an affiliate of Centurium Capital and Joy Capital totaling $250 million.

Both Centurium Capital and Joy Capital are private-equity firms in China and shareholders of Beijing-headquartered Luckin.

Centurium Capital is leading the deal through a private placement of about $240 million in senior convertible preferred shares of the company. Joy Capital has agreed to an investment, also through a private placement, totaling about $10 million in senior preferred shares.

Luckin said it plans to use the investment proceeds to facilitate its proposed offshore restructuring and fulfill its obligations with the U.S. Securities and Exchange Commission.

Last year Luckin admitted that it had intentionally faked more than $300 million in sales. That revelation would lead to the firing of its chairman and chief executive, the delisting of its stock by Nasdaq, and hundreds of millions in fines imposed by Chinese and U.S. regulators. 

Luckin filed for Chapter 15 bankruptcy in New York in February.


[Photo: Luckin Coffee]
Luckin Coffee unmanned retail strategy includes the Luckin Coffee Express and Luckin popMINI vending machines. The Luckin Coffee Express, which uses the Swiss-made Schaerer coffeemaker, is designed for workplace and public venues. Luckin popMINI is a smart vending machine that can sell products at “e-commerce prices.”
Coffee Service

Luckin Coffee reveals restructuring strategy

March 22, 2021
China’s Luckin Coffee Inc., a coffeehouse chain and provider of self-service coffee equipment, said it has entered into a restructuring support agreement with holders of a majority...
[Image: Luckin Coffee]
Luckin Coffee Logo

Chinese coffee chain Luckin files for bankruptcy after accounting scandal

Feb. 9, 2021
Attempting to recover from a $180 million fine for accounting fraud, Luckin Coffee, a Starbucks competitor China, filed for U.S. bankruptcy protection. Luckin on Feb. 5 filed ...