Three former directors of Leeds-based catering company Duchy Catering have been arrested under the Proceeds of Crime Act.
Andrew Haworth, 45, from Bingley; Mike Lee, 47, from Bingley and David Gooch, 39, from Liverpool were arrested yesterday (26 January), reports The Yorkshire Evening Post. Their homes were searched and documents and business papers were taken away by police.
West Yorkshire police, who are leading the investigation, confirmed to Caterersearch in a statement that: "Three men, aged 45, 47 and 39, were arrested as part of an investigation into alleged offences at a business based within the city."
Duchy Catering was acquired by Graysons Restaurants earlier this month and it has since emerged that the company had been placed into administration ahead of the deal after suffering cash flow problems.
In a statement issued today Philip Nash, chairman of Graysons, said: "Graysons Restaurants, as previously reported, acquired the business and assets of Duchy Catering Limited in administration, from KPMG; the transaction was completed on 10th January 2009.
"The acquisition of the business by means of an auction conducted by the administrators KPMG, was a robust and well-managed process, during which Graysons management dealt direct with the appointed administrators and legal teams.
"Today's reports are unfortunate but they do not impact at all upon the acquisition or our plans for the future, we are delighted with the acquisition and in particular the response from our clients and staff which has been very positive.'
Graysons was set up in 2008 with backing form Ex Compass chairman Sir Francis Mackay. See our mini profile on Graysons for more about the company.
Picture courtesy of TheYorkshire Evening Post.
By Andrew Smith
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