Luckin Espresso’s board is forcing out its chairman (moreover, chairman is forcing out the rest of the board)

Typically you merely can’t get a [L]uckin’ break.

After saying this morning that it is ending its battle to stay listed on Nasdaq, China-based espresso chain and provide agency Luckin Espresso launched in a submitting with the SEC that it is requiring that its chairman, Lu Zhengyao, resign.

Luckin Espresso will unluckin’ly delist from Nasdaq following fraud allegations

It moreover launched in its SEC submitting that the chairman has requested the firing of neutral director Sean Shao by the use of a shareholders determination, which can probably be voted upon at a shareholders meeting to be held on Sunday, July fifth.

My god.

It’s getting ugly at Luckin, which is struggling to turnaround throughout the aftermath of revelations of a $300 million accounting fraud that has seen its stock price plummet in newest months. Shao has been principal the board’s neutral investigation over the accounting irregularity.

Luckin Espresso’s board initiates investigation into $300M potential fraud

Now, at a shareholders meeting, the board will probably be up for grabs, with merchants throughout the agency (certain, there are nonetheless merchants!) deciding on who to take care of and who to fireplace in a devolving case of firm governance run amok.

Together with voting on various current directors of the company, shareholders may even vote on placing in two new neutral directors, Zeng Ying and Yang Jie, who’ve longtime enterprise and licensed backgrounds.

We had beforehand recognized regarding the extraordinary shareholders meeting, nevertheless now the company has upped the ante, by voting to stress out the chairman by July 2 — three days sooner than the shareholders meeting is scheduled to occur.

In truth, at this stage, it’s unimaginable to say what comes subsequent. Nevertheless what I can say is that Luckin is at current shopping for and promoting down 54% at shut this Friday, and is worth barely a few hundred million {{dollars}} — down from its peak market cap of over $12 billion. Whoever wins goes to non-public some really empty cups.