18th Oct 2018 06:55
LONDON (Alliance News) - The bosses of troubled cafe chain Patisserie Holdings PLC could face a parliamentary probe into the GBP20 million black hole uncovered in the firm's accounts last week, The Daily Mail reported on Wednesday.
The newspaper said that Chief Executive Luke Johnson, the owner of more than a third of the Patisserie Valerie's parent, and other members of the senior management are facing calls from MPs to account for their governance.
Trading in the company's shares was suspended last week after the cafe chain discovered "significant and potentially fraudulent" accounting irregularities.
Since then, Finance Director Chris Marsh was suspended from the company and arrested, before being released on bail.
Meanwhile, the UK Serious Fraud Office launched a criminal investigation into an individual related to the company, while auditor Grant Thornton is facing civil legal action as it failed to discover the problems, The Mail reported.
Last Friday, the company was able to raise GBP15.7 million through the placing of 31.5 million shares at 50 pence. Its shares were last quoted at 429.50p per share before the stock was suspended from trading.
Alongside the placing, Johnson agreed to a loan of GBP20 million, rescuing the company from collapse and saving around 2,800 jobs.
https://www.thisismoney.co.uk/money/markets/article-6287955/Crumbling-cake-chain-faces-probe-MPs-demand-answers-Patisserie-Valerie-boss-black-hole.html
Related Shares:
Patisserie Holdings Plc