Shares in Patisserie Valerie’s parent company Patisserie Holdings PLC (LON:CAKE) have been suspended while it investigates “significant, and potentially fraudulent, accounting irregularities”.
The bakery, which is 37% owned by renowned entrepreneur Luke Johnson, said these could cause a “potential material misstatement” in its accounts.
“We are all deeply concerned about this news and the potential impact on the business,” said Johnson, Patisserie’s chairman.
“We are determined to understand the full details of what has happened and will communicate these to investors and stakeholders as soon as possible.”
Black hole?
Reports earlier on Wednesday suggested that the black hole in the company’s accounts could exceed £20mln.
Chief financial officer Chris Marsh has been suspended while the company, which is valued at around £450mln, conducts a full investigation to find out its true financial position.
Patisserie said the situation has “significantly impacted” its cash position and may lead to a “material change” in its overall financial position.