Auditor of Patisserie Valerie sued for £200m

The liquidators of Patisserie Valerie are suing Grant Thornton for £200m for its role in its collapse.

Liquidator FRP Advisory has launched a claim against the accountancy giant, which audited the cake shop’s accounts for 12 years before it went bust.

Patisserie Valerie – whose former chairman is serial entrepreneur and anti-lockdown commentator Luke Johnson – collapsed into administration two years ago following the shock revelation of significant fraud at the company and the discovery of a £40m hole in its finances.

Grant Thornton failed to spot the fraud.

The lawsuit will be one of the largest brought against a top six auditor in the UK and would be a serious blow to the firm.

FRP said ‘large accounting misstatements’ resulted in Patisserie Valerie’s board ‘ being unaware that the group has insufficient funds to continue to trade’.

Grant Thornton said: ‘We will rigorously defend the claim. Patisserie Valerie is a case that involves sustained and collusive fraud, including widespread deception of the auditors. The claim ignores the board’s and management’s own failings.’