Patisserie Valerie faces fight to survive over winding-up bid and financial irregularities
CAKE chain Patisserie Valerie, which has three stores in Belfast, is facing a fight for survival after receiving a winding-up petition over unpaid taxes and unearthing potentially fraudulent accounting irregularities.
In a stock market update, parent firm Patisserie Holdings said it has received a winding-up petition for its principal trading unit Stonebeach.
It relates to £1.14m owed to HMRC and was filed at the High Court of Justice, Companies Court.
The chain has two coffee shops in Belfast’s city centre, and a third in south Belfast’s Forestside Shopping Centre.
The winding-up hearing is scheduled for October 31 and Patisserie Holdings said it is in communication with HMRC as it scrambles to “understand better the financial position of the group”.
It caps a dramatic day for the firm, which earlier saw its shares suspended following the discovery of an accounting black hole.
Patisserie Holdings said it has been notified of “significant, and potentially fraudulent, accounting irregularities and therefore a potential material mis-statement of the company’s accounts”.
This has significantly affected the company’s cash position and may lead to a “material change” in its overall financial position.
Patisserie asked that its shares be suspended from trading on the London Stock Exchange’s junior AIM market while it carries out a full investigation into its true financial position.
In addition, finance chief Chris Marsh has been suspended from his role and accountancy giant PwC has been drafted in to check the company’s books.
Chairman Luke Johnson said: “We are all deeply concerned about this news and the potential impact on the business. We are determined to understand the full details of what has happened and will communicate these to investors and stakeholders as soon as possible.”
Mr Johnson is Patisserie Holdings’ largest shareholder with a 37% stake.
In May, the firm reported £11.1m half-year pre-tax profits.