Patisserie Valerie black hole grows to £94m
The accounting black hole at Patisserie Valerie has swelled to £94m, greater than double a prior estimate, in accordance to a brand new file by means of its directors.
After it fell into management in January, the cafe chain was once discovered to have overstated its money place by means of £30m and failed to reveal overdrafts of just about £10m.
KPMG’s newest file says the corporate falsely claimed to have £54m in money.
The majority of Patisserie Valerie has been bought to a personal fairness company.
In the file, KPMG notes that after the corporate’s accountancy issues have been first reported ultimate October its chairman Luke Johnson pumped £20m into the trade.
But it says: “Further analysis by the directors and forensic accountants in the following months led the board to understand that the consolidated accounts were overstated by approximately £94m.”
The former finance director of the chain, Chris Marsh, is underneath investigation by means of the Serious Fraud Office.
He was once arrested and launched on bail in October.
KPMG mentioned that in addition to overstating its money place, Patisserie Valerie additionally claimed its belongings have been value £23m greater than they have been in fact.
The accountancy company additionally mentioned as a result of the dimensions of the issues,
“It can be vital for the Company to imagine whether or not there is also enough grounds to identify doable felony claims towards numerous events.
“These events would possibly come with Grant Thornton, who have been the auditors to the Patisserie Valerie Group,” it mentioned.
However, KPMG mentioned it might no longer be suitable for it to imagine whether or not Patisserie Valerie has a possible felony declare towards Grant Thornton as a result of “Grant Thornton also are auditors to KPMG”.