Taxman wants his slice of cake firm
PATISSERIE Valerie faces a fight for survival after being hit by an accounting scandal.
The cake chain’s owner received a winding up petition over unpaid taxes after unearthing potentially fraudulent accounting irregularities.
The shock move relates to £1.14million owed to HMRC and was filed at the High Court of Justice.
A winding up hearing is scheduled for October 31 and Patisserie Holdings said it is in talks with HMRC as it scrambles to “understand better the financial position of the group”.
It capped a dramatic day yesterday for the firm, which earlier saw its shares suspended following the discovery of an accounting black hole. It also suspended finance chief Chris Marsh. 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 had significantly affected the company’s cash position, it said.
Marsh is credited with being instrumental in the firm’s growth since his appointment in 2006.
Patisserie Valerie has grown from just eight stores to more than 200, and listed on the stock market four years ago.
The company is 37% owned by entrepreneur Luke Johnson, best known for reviving restaurant chain Pizza Express.
He 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.”
The company, which had a stock market value of £444m before the share suspension.
In May, it reported a 14.2% rise in profit for the six months ending March 31, up from £9.7m to £11.1m. Revenues rose 9.1% to £60.5m.