It turned out that Node.js fs module does not have a method to remove the directory and its content recursively. Instead you should go through the directory structure and remove atomic items, i.e. individual files and empty directories. So I found a nice gist by Takuo Kihira at https://gist.github.com/2367067 made in JavaScript and decided to make a CoffeeScript version of it:
But in real life you should better use the system command:
child_process.exec "rm -rf #{directory}"
This might be much faster at the cost of platform dependency.