Investigation launched into Patisserie Valerie auditor

21 November 2018 by
Investigation launched into Patisserie Valerie auditor

An investigation has been launched into accountancy firm Grant Thornton's audit of Patisserie Valerie's financial statements.

The Financial Reporting Council has launched an investigation under the Audit Enforcement Procedure into statements for the years ending 30 September 2015 and 2016, 2017.

A separate investigation has been launched into Patisserie Valerie's former chief financial officer Chris Marsh's preparation and approval of the documents.

Marsh resigned in October after being suspended and later arrested on suspicion of fraud by false representation. Police arrested Marsh on 11 October before releasing him under investigation. The Serious Fraud office confirmed it had opened a criminal investigation.

The investigation comes after historical statements of the cash position of the company were found to have been mis-stated and subject to both suspected fraudulent activity and accounting irregularities, including undeclared overdrafts amounting to £10m.

Shareholders have since backed a rescue package for the chain that will see £15m of new shares issued to private investors following a funding injection by director Luke Johnson to the tune of £20m.

Earlier this week the troubled bakery chain said it agreed an extension to the period in which it will need to strike an agreement with lenders to cover existing debt until 18 January 2019.

Trading in the Patisserie Valerie's shares remains suspended.

Under investigation finance director Chris Marsh resigns from Patisserie Valerie>>

Paul May resigns as CEO of Patisserie Valerie as turnaround specialist is drafted in>>

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