Patisserie Valerie faces closure as monetary disaster deepens

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Cafe chain Patisserie Valerie has revealed it might be pressured to cease buying and selling until it could actually discover an “rapid injection of capital”, after reporting a multi-million pound gap in its accounts on Wednesday.

The corporate stated that on Tuesday, the board had been notified of “vital, and doubtlessly fraudulent, accounting irregularities and subsequently a possible materials mis-statement of the corporate’s accounts”.

“This has considerably impacted the corporate’s money place and should result in a cloth change in its general monetary place,” the agency stated in a press release to the London Inventory Alternate.

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“Because of this the corporate has requested that its shares be suspended from buying and selling on AIM whereas it conducts a full investigation with its authorized and professional advisers into its true monetary place.”

Chris Marsh, the group’s chief monetary officer, has been suspended from his function.

The group additionally revealed that HMRC had filed a winding up petition  in respect of the group’s important buying and selling subsidiary, Stonebeach, over an unpaid tax invoice of £1.14m.

The black gap in its funds might price the corporate greater than £20m, which might doubtlessly wipe out income for your complete yr.

On Thursday, Patisserie Valerie issued an replace to the market and stated: “The board has now reached the conclusion that there’s a materials shortfall between the reported monetary standing and the present monetary standing of the enterprise.

“With out an instantaneous injection of capital, the administrators are of the view that that’s no scope for the enterprise to proceed buying and selling in its present kind. As a consequence, the administrators and the corporate’s skilled advisers are assessing all choices out there to the enterprise to maintain it buying and selling and can replace the market in the end.”

Patisserie Valerie presently employs round 2,500 folks throughout the UK. 

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