Patisserie Valerie boss resigns after scandal
THe boss of scandal-hit Patisserie Valerie has quit just weeks after a probe into alleged fraud was launched.
Paul may, 59, stepped down with immediate effect as the cafe chain’s parent company brought in Stephen Francis, the former chief executive of British pork producer Tulip.
Patisserie Holdings credited Francis, 57, with leading a ‘rapid return from significant losses’ at Tulip as well as reviving firms including printer Danwood Group and Vion Food Group.
But the group admitted Francis was also a director of Paramount Foods, a subsidiary of Vion, 12 months before it was plunged into administration.
Greg Lawless, analyst at Shore Capital, questioned Francis’s lack of experience in the dining sector and called for executive chairman Luke Johnson to give up his board role. ‘He might be a great turnaround specialist in a manufacturing plant but this is selling cream teas to tourists,’ he said.
‘What would be even better is if Luke Johnson left the board and you’d have a fresh pair of eyes with a mandate to challenge everything.’
The appointment brings to an end may’s 12-year tenure after the group became embroiled in an accounting scandal when a £40m black hole was discovered last month. The Serious Fraud Office is investigating potential fraud at Patisserie Holdings, which has seen the arrest and subsequent resignation of finance director Chris marsh.
may, who is Johnson’s longtime business partner, also came under fire when it emerged he and marsh were awarded twice as many share options as expected, allowing them to cash in a combined £4.6m. mark Bentley, director of shareholder action group, Sharesoc, said the appointment of Francis did not go far enough. ‘The big question that remains open is what is the settlement with Paul may?’ Bentley said.
‘How can he have been unaware of the cash being nowhere near what was stated? It seems extraordinary that he wasn’t aware of that.’ Bentley added: ‘may’s position was pretty untenable.’
more than 99pc of investors voted in favour of a cash lifeline but angry shareholders lashed out at management, branding Johnson ‘arrogant’.
Patisserie Holdings’ shares have been suspended since the scandal, with no indication as to when it will resume trading.