Onetime High-Flyer Luckin Coffee Raises Funds Amid Auditor Swap
- Company tabs Hong Kong-based firm to replace former auditor
- Private equity companies invest $250 million in bankrupt chain
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Luckin Coffee Inc., the disgraced Chinese coffee chain once seen as a rival to Starbucks Corp., replaced its auditor and said it secured $250 million in funds from a pair of private equity firms.
The company’s board approved the appointment of Hong Kong-based Centurion ZD CPA & Co. as auditor effectively immediately, according to a statement Thursday. Marcum Bernstein & Pinchuk LLP, the company’s previous auditor, “believes that it has not gathered sufficient independent third-party data or conducted sufficient audit procedures to complete the audit,” Luckin said.