Luckin Coffee (OTCMKTS:LKNCY) is continuing its soap opera performance and is now filing for bankruptcy.
The dishonored Chinese coffee chain is filing for bankruptcy but doesn’t plan to shut down its business. Instead, the chain will keep stores open and continue normal operations throughout the process.
Luckin Coffee has the following to say about the bankruptcy in a news release.
“The Company is negotiating with its stakeholders regarding the restructuring of the Company’s financial obligations, to strengthen the Company’s balance sheet and enable it to emerge from the Cayman Proceeding as a going concern, for the benefit of all stakeholders.”
Luckin Coffee has had its fair share of trouble recently. The company’s stock was recently kicked off the Nasdaq Exchange after claims of fraud were made against it. These same claims also saw several top executives of the company step down and face criminal charges.
Potential investors that are still considering LKNCY stock despite all of this need to know more about the company. Check out the following articles from other InvestorPlace contributors to get a better grasp on Luckin Coffee.
LKNCY stock was down 36.8% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Article printed from InvestorPlace Media, https://investorplace.com/2021/02/luckin-coffee-bankruptcy-what-happens-next-for-the-embattled-chain-and-lkncy-stock/.
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