Four people face fraud charges over collapse of Patisserie Valerie

Business

Four people have been charged in connection with the collapse of Patisserie Valerie – a bakery chain that once had almost 200 stores.

The Serious Fraud Office (SFO) said it related to an investigation that began in October 2018 – just two days after the company abruptly suspended trading, with more than 900 jobs and 70 sites subsequently lost.

Christopher Marsh, who formerly served as Patisserie Holdings’ chief financial officer, is among those facing charges.

His accountant wife Louise – as well as financial controller Pritesh Mistry and financial consultant Nileshkumar Lad – have also been charged.

“The SFO has charged all four suspects with conspiring to inflate the cash in Patisserie Holdings’ balance sheets and annual reports from 2015 to 2018, including by providing false documentation to the company’s auditors,” a statement read.

“During this time, the company also reported holding £28m in accounts, yet concealed £10m in debts from its investors and creditors.”

The four individuals are due to appear before Westminster Magistrates Court next month for the charges to be formally read.

Closed businesses in Sheffield city centre as the UK continues in lockdown to help curb the spread of the coronavirus.
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Picture by: Mike Egerton/PA Archive/PA Images
Date taken: 31-Mar-2020
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The company’s auditor was fined in 2021 by regulators over its work on Patisserie Valerie’s accounts

Lisa Osofsky, Director of the SFO, added: “Patisserie Valerie’s abrupt collapse rocked our high streets – leaving boarded-up shops, devastating job losses and significant investor losses in its wake.

“Today is a step forward in getting to the bottom of this scandal.”

The criminal case has run separate to wider investigations into failures associated with the company’s demise.

Accountancy firm Grant Thornton was fined £2.34m in 2021 by the industry’s watchdog.

The Financial Reporting Council’s conduct inquiry found “serious lack of competence” in its audits of the cake chain, declaring that “red flags” were missed.

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