Luckin Coffee Inc. LK, -35.99% stock has started trading again after more than a month, but it will have to start closing stores, says Quo Vadis Capital. "Leaving aside the fraud, the figures that are available suggest that Luckin Coffee never had a viable business model," said John Zolidis, president of Quo Vadis, in comments sent to MarketWatch. "The company grew too fast and acquired customers via promotional offers, without ever proving the economics." Luckin is being investigated for financial misconduct and has terminated its top executives. The store closures will come as a result of losing access to capital, Zolidis said. And he isn't hopeful for the locations that remain, forecasting that cash flow will be offset by the shutdowns, corporate expenses and lawsuits to come. "We continue to see the most likely outcome as a complete wipe-out for equity holders," Zolidis said. "We ascribe very remote odds to the hope that Starbucks Corp. SBUX, +1.85% or another party will swoop in to buy Luckin's assets prior to liquidation." Quo Vadis rates Luckin stock sell. Luckin shares plunged 35% in premarket trading, and is down nearly 89% for the year to date. The S&P 500 index SPX, +1.55% is down 9.5% for 2020 so far.