High street bakery Patisserie Valerie has temporarily suspended trading and the company’s chief financial officer following a discovery of “potentially fraudulent” accounts.
At 7.30am on 10 October, the company suspended its shares as it awaited clarification on its financial position. Patisserie’s directors were notified of “accounting irregularities” and therefore a potential “material misstatement” of its accounts. According to Sky News, a “black hole” in excess of £20m was discovered.
Patisserie said this had impacted its cash position and could lead to “a material change in its overall financial position”. It will conduct a full investigation with its legal and professional advisers to determine its true financial position.
In the meantime Chris Marsh, the chief financial officer, has been suspended from his role.
Luke Johnson, chairman, 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.”