Patisserie Valerie suspends CFO after discovering potential accounting fraud

Patisserie Holdings said it had found "significant, and potentially fraudulent accounting irregularities"

LONDON, ENGLAND - FEBRUARY 16: People sit outside a Patisserie Valerie in Marylebone on February 16, 2017 in London, England. The Association for Licensed Multiple Retailers have written to the Chancellor Philip Hammond calling for more transitional relief ahead of a business rate increase in April. A further rise in business rates could force more pubs and restaurants across the UK to close as they struggle to keep up with costs. (Photo by Jack Taylor/Getty Images)

Patisserie Holdings said its financial position had changed as a result of potential fraud. Getty Images

Oct 10, 2018

British cafe and casual dining company Patisserie Holdings said it had found "significant, and potentially fraudulent accounting irregularities" and suspended its chief financial officer Chris Marsh.

The owner of the Patisserie Valerie chain said this had significantly impacted its cash position and may lead to a material change in its overall financial position.

Its shares would remain suspended as it investigates its financial position, it added.

"We are all deeply concerned about this news and the potential impact on the business," chairman Luke Johnson said.

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Mr Marsh has been instrumental in the company's growth since he was appointed to the role in 2006. Under his watch, Patisserie grew from just eight stores 12 years ago to over 200 today.

The company sells cakes, pastries, snacks, meals and drinks under brands including Patisserie Valerie, Philpotts, Baker & Spice and Flour Power City.

Peel Hunt analysts put the company's stock and forecasts 'under review' from a "Buy" rating earlier.

Patisserie Holdings listed on AIM in 2014 and has a market capital of nearly $585 million (Dh2.1bn), according to Refinitiv Eikon data.