“On Tuesday 18 June, as part of a joint operation with the Hertfordshire, Leicestershire and Metropolitan Police Services, the SFO arrested and questioned five people in connection with the ongoing investigation into individuals associated … The company went bust in January, sparking the loss of 900 jobs when 70 of its almost-200 stores and concessions closed. .css-14iz86j-BoldText{font-weight:bold;}The owner of Patisserie Valerie has said an accounting scandal it revealed in October was worse than it thought. Advertisement. On the 16th of January, Patisserie Valerie warned that its accounting scandal could be worse than it had thought with “thousands of false entries into the company’s ledgers”. Profitability and cash flow had been overstated and were "materially below" figures announced in October, it said. This includes thousands of false entries in its ledgers, .css-yidnqd-InlineLink:link{color:#3F3F42;}.css-yidnqd-InlineLink:visited{color:#696969;}.css-yidnqd-InlineLink:link,.css-yidnqd-InlineLink:visited{font-weight:bolder;border-bottom:1px solid #BABABA;-webkit-text-decoration:none;text-decoration:none;}.css-yidnqd-InlineLink:link:hover,.css-yidnqd-InlineLink:visited:hover,.css-yidnqd-InlineLink:link:focus,.css-yidnqd-InlineLink:visited:focus{border-bottom-color:currentcolor;border-bottom-width:2px;color:#B80000;}@supports (text-underline-offset:0.25em){.css-yidnqd-InlineLink:link,.css-yidnqd-InlineLink:visited{border-bottom:none;-webkit-text-decoration:underline #BABABA;text-decoration:underline #BABABA;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-skip-ink:none;text-decoration-skip-ink:none;text-underline-offset:0.25em;}.css-yidnqd-InlineLink:link:hover,.css-yidnqd-InlineLink:visited:hover,.css-yidnqd-InlineLink:link:focus,.css-yidnqd-InlineLink:visited:focus{-webkit-text-decoration-color:currentcolor;text-decoration-color:currentcolor;-webkit-text-decoration-thickness:2px;text-decoration-thickness:2px;color:#B80000;}}it said in a statement. The tie-up with Sainsbury’s marks a major step for Patisserie Valerie, which became embroiled in an accounting scandal in 2018. © 2020 BBC. Published on Oct 17, 2018 Chris Boxall, Fundamental Asset Management, says that the issues around the suspension of Patisserie Holdings, which … The chain started life in London’s Soho in 1926 and, at its height, employed about 3,000 staff across almost 200 outlets and was once valued at £450m. Patisserie Valerie has been in crisis since then, when it uncovered a £40m black hole in its finances, which it blamed on “potentially fraudulent” accounting irregularities. Last modified on Mon 24 Jun 2019 18.50 BST. U.K. entrepreneur Luke Johnson’s efforts to save Patisserie Valerie failed as an accounting scandal pushed the bakery chain’s parent into insolvency, threatening as … VideoHow a girl's fairy house sparked a magical friendship, 'People have Zoom fatigue but it's not our fault', Tech trends in 2021: Fast planes and homeworking, .css-orcmk8-HeadlineContainer{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;}Trump urges Congress to amend 'wasteful' coronavirus aid bill.css-1dedj2h-Rank{-webkit-align-self:center;-ms-flex-item-align:center;align-self:center;color:#B80000;margin-left:3.125rem;}1, Dr Deborah Birx: White House virus expert quits over holiday travel2, Trump pardons two convicted by Russia investigation3, Karima Baloch: Pakistani rights activist found dead in Toronto4, Giant iceberg A68a shatters into large fragments5, US sues Walmart for alleged role in opioid crisis6, Viral 'butt-less' pyjamas ad sparks confusion7, US election 2020: Fox News, Newsmax walk back voter fraud claims after legal threat8, Alex Padilla to replace Kamala Harris in US Senate9, Coronavirus spreads to Antarctic research station10. By Huw Jones. Patisserie Valerie was bought out of administration in February by an Irish private equity firm, Causeway Capital Partners (CCP) for £5m, in a move that helped to save around 2,000 jobs and kept 96 outlets open. Patisserie Valerie has been lovingly hand-making cakes, pastries and gateaux since 1926 from its restaurants. Despite a desperate attempts to rescue Patisserie Valerie, including lending £10m of his own money to the company, the firm fell into administration after a black hole in its accounts worth £94m was unearthed amid accusations of fraudulent activity that hid its existence. The Dublin-based owner last week laid bare the desperate state of the company it inherited from the previous owners, including a cost-cutting approach so severe that managers stopped using butter in puff pastry. Five people have been arrested and questioned over alleged accounting fraud at the Patisserie Valerie chain, the Serious Fraud Office has said. According to a statement from the Serious Fraud Office (SFO) issued over the weekend, the arrests took place last Tuesday in a joint operation with Hertfordshire, Leicestershire and Metropolitan police services after the discovery of a multimillion-pound gap in the company’s accounts late last year. Grant Thornton, the UK’s fifth largest accounting firm by revenue, may also potentially face the wrath of the Financial Reporting Council, which regulates the audit profession. The collapse followed the discovery of a … Trading in the shares of Patisserie Holdings, the parent company of Patisserie Valerie, were suspended on 10 October 2018 following the discovery of potentially fraudulent accounting irregularities, which had led to the possibility that there had been a material mis-statement of the company's accounts. tricked by a fake picture of its financial health. Matt Scaife, a partner at CCP, said it was clear the company had been “seriously mismanaged” in the run up to its collapse. 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