Cafe Patisserie Valerie fights for its survival

HIGH street cafe chain Patisserie Valerie is fighting for survival after discovering a £20m black hole in its accounts and an unpaid tax bill.

The company, part-owned by Pizza Express tycoon Luke Johnson, said it was investigating ‘significant, and potentially fraudulent, accounting irregularities’. More than £20m could be unaccounted for and the Serious Fraud Office is now investigating.

The discovery prompted the suspension of Chris Marsh, Patisserie Valerie’s long- serving finance chief, and the London Stock Exchange halted trading in its shares. There is no suggestion that Marsh is accused of any wrongdoing.

Bosses revealed they had only just learned of a bid by tax officials to have their company wound up over £1.14m owed to HM Revenue and Customs. The company, which has more than 2,000 staff, now faces a High Court hearing in less than three weeks over the bill. Johnson, who is Patisserie Valerie’s chairman and has a 37pc stake worth £166m, said: ‘We are all deeply concerned about this news and the potential impact on the business.’

It is understood Patisserie Valerie, which has more than 200 cafes across the UK, has not yet reported the possible fraud to the police.

Executives were informed about the missing money on Tuesday and have brought in lawyers and advisers to comb through the finances. The company added: ‘This has significantly impacted the company’s cash position and may lead to a material change in its overall financial position. The company has requested that its shares be suspended from trading while it conducts a full investigation.

Marsh, 44, has been a director at Patisserie Valerie since 2007. He is part of the management team that has transformed the chain from a business with just eight cafes 12 years ago.