Patisserie Valerie bossNews in £20m rescue package

man from St Albans has been arrested on suspicion of fraud by false representation. He has been released under investigation.”

The probe is being led by the Serious Fraud Office (SFO).

The SFO said: “Following the Regulatory News Service announcement by Patisserie Holdings PLC, the SFO confirms that its director has opened a criminal investigation into an individual. “We can give no further information or comment at this time.”

The arrest was followed by the closure of some shops yesterday.

Landlords for at least two Patisserie Valerie locations in London – in Hammersmith and Edgeware Road – cancelled their lease agreements with the company over breach of contract. It is understood that the company has failed to pay rents.

Patisserie Holdings – which has an outlet in King Street, Huddersfield – said on Wednesday that it has been notified of “significant, and potentially fraudulent, accounting irregularities and therefore a potential material misstatement of the company’s accounts”.

This significantly affected the company’s cash position, with the firm saying it could lead to a “material change” in its overall financial position.

Mr Marsh was later suspended from his role and accountancy giant PwC drafted in to look through the company’s books.

To compound its troubles, Patisserie Holdings has also received a winding-up petition for its principal trading unit Stonebeach, with a hearing now scheduled for October 31. It relates to £1.14 million owed to HMRC. Patisserie Holdings - which owns additional brands such as Druckers, Philpotts and Baker & Spice trades from more than 200 stores and also has a partnership with Sainsbury’s, with branded counters present in the supermarket.