Wednesday, 12 December, 2018

Patisserie Valerie will be 'forced to stop trading' without cash injection

The owner of Patisserie Valerie has suspended its shares following the discovery of potentially fraudulent accounting irregularities The owner of Patisserie Valerie has suspended its shares following the discovery of potentially fraudulent accounting irregularities
Ginger Lawrence | 11 October, 2018, 18:42

The 92-year-old cake chain, which has more than 200 stores, halted trading in its shares as it revealed "potentially fraudulent" financial irregularities that, according to Sky News, could amount to more than £20m.

It further disclosed that it had just learned of a winding-up petition that had been filed against its main subsidiary relating to more than £1m owed to the United Kingdom tax office.

The company added that Chris Marsh, its chief financial officer, has been suspended from his role.

Commenting on the news, Luke Johnson, chairman of Patisserie Holdings, said that the group was "deeply concerned about this news and the potential impact on the business".

The future of a popular chain of cafes, with four stores across the county, hangs in the balance after revealing it faces a financial management crisis, including a £1.1 million unpaid tax bill.

Patisserie Holdings said: 'The company, in conjunction with its professional advisers, has during the last 24 hours, undertaken further investigation into the financial status of the company.

"Without an immediate injection of capital, the directors are of the view that there is no scope for the business to continue trading in its current form", it continued.

Why Kim Kardashian and Kanye West Not Agreeing Makes Their Relationship 'Stronger'
In this 37-year-old Kim Kardashian got into an altercation and her sister 39-year-old Courtney and 34-year-old Chloe. The sisters were spotted leaving a studio after filming Keeping Up With The Kardashians with their mom Kris Jenner .

Earlier on Wednesday, its shares were suspended following the discovery of an accounting blackhole.

In an update yesterday afternoon the company said its directors had just learned of a winding up petition filed in September regarding its principal trading subsidiary, Stonebeach, relating to £1.14m owed to HMRC.

The stark statement to investors comes after the firm uncovered "significant, and potentially fraudulent, accounting irregularities".

As a result, this has significantly affected the United Kingdom company's cash position and may lead to a "material change" in its overall financial position.

Patisserie Holdings - which had a market value of almost £450m before shares were suspended this week - operates from more than 200 stores.

In May, the firm reported a 14.2% rise in pre-tax profit for the six months ended March 31, up from £9.7m to £11.1m.

Revenue climbed 9.1% to £60.5 million, it said at the time.