Chris Marsh has resigned as finance director of Patisserie Valerie after being suspended earlier this month and later arrested on suspicion of fraud by false representation.
Marsh's initial suspension was announced on 10 October as Patisserie Valerie launched an investigation into "significant, and potentially fraudulent, accounting irregularities" and "a potential material mis-statement of the company's accounts".
In an update today the company said: "Patisserie Holdings plc announces that following the suspension of Chris Marsh on 9 October 2018, the company has now accepted his resignation as the company's finance director with immediate effect, while reserving its position in respect of any potential claims it may have against him."
Police arrested Marsh on 11 October before releasing him under investigation. The Serious Fraud office confirmed it had opened a criminal investigation.
On Wednesday this week Patisserie Valerie announced that a winding up petition against its principal trading subsidiary had been dismissed by the High Court.
The petition against Stonebeach Limited was filed by HMRC on 14 September over a £1.14m unpaid tax bill. Directors had been unaware of the petition until earlier this month when it was discovered following the suspension of trading in shares amid the investigation into accounting irregularities.
The company later said historical statements on the cash position of the company were mis-stated and subject to both fraudulent activity and accounting irregularities, including undeclared overdrafts amounting to £10m.
Investor Luke Johnson put up a £20m rescue package, consisting of a £10m loan and a further bridging loan of up to £10m, which was provided alongside the issuing of 30,000,000 new shares, which raised £15.7m.