Patisserie Valerie says finance director arrested
Owner of café chain disclosed accounting irregularities earlier this week
Patisserie Holdings, owner of the Patisserie Valerie coffee shop chain, has said in a statement to the markets that its finance director was arrested on Thursday night.
Chris Marsh was suspended from his post on Wednesday. Patisserie Holdings, which operates a chain of more than 200 cafés across the UK, said Mr Marsh had been released on bail.
Patisserie Holdings had disclosed earlier this week the discovery of significant accounting irregularities at the Aim-traded company.
“Further updates will be released in due course,” Patisserie Holdings said on Friday. Mr Marsh could not immediately be reached for comment.
A spokesperson for Hertfordshire Constabulary said that a 44-year-old man from St Albans had been arrested on suspicion of fraud by false representation and released under investigation, without charge.
In a statement, the spokesperson added: “We are not in a position to confirm names at this time. The investigation is being led by the Serious Fraud Office so please direct any further inquiries to them.”
Entrepreneur Luke Johnson, who is executive chairman and a major shareholder, is working with advisers to save the company after it revealed on Thursday that there was a material difference between its stated financial position and its actual condition.
“Without an immediate injection of capital, the directors are of the view that [there] is no scope for the business to continue trading in its current form,” its board said on Thursday.
The group is also facing a winding-up order from the tax authorities. PwC, the professional services firm, is standing by to act as administrator if fresh funding cannot be found in time.