Patisserie Holdings PLC (LON:CAKE) chief executive Paul May has resigned amid an investigation into claims of “fraudulent activity” that caused the business to collapse.
The company, which owns the cake shop and café chain Patisserie Valerie, said May would step down immediately and would be replaced by Stephen Francis. His most recent role was as chief executive of pork farmer Tulip Ltd, where he led a return to growth.
READ: Patisserie Valerie parent's suspended finance director Chris Marsh resigns
Francis helped nurse a number of other companies back to health, including as the chief executive of timber-frame houses maker Danwood Group and in turnaround roles at Vion Food Group and Vita Group.
He has also held a number of senior roles at Barclays Capital, PricewaterhouseCoopers and McKinsey.
“He has a strong track record of restoring value in turnaround situations, especially in the food industry, and the board looks forward to working with him in the revival of the business,” said chairman Luke Johnson, who last month agreed to provide loans of up to £20mln to help keep the company afloat.
The news follows the departure of Patisserie’s finance director Chris Marsh, who has been suspended since an accounting black hole was discovered by the company.
Marsh was arrested last month on suspicion of fraud by false representation and released on bail.
The Serious Fraud Office is currently investigating the fraud allegations.