What is Patisserie Valerie's share price, what were the fraud warnings and will the bakery close down?
Here's what we know about the embattled cake shop.
What is Patisserie Valerie's share price?
Patisserie Valerie is currently trading at 429.5p.
The company's future was originally thrown into question yesterday, when shares were suspended following the discovery of a major black hole in its accounts.
Later on Wednesday, Patisserie Holdings said it had received a winding-up petition for its principal trading unit Stonebeach, with a hearing now scheduled for October 31.
It relates to £1.14 million owed to HMRC.
Patisserie Holdings said on Wednesday that it was in communication with HMRC as it worked to "understand better the financial position of the group".
Chairman Luke Johnson, a serial entrepreneur, is Patisserie Holdings' largest shareholder with a 37 per cent stake.
In May, the firm reported a 14.2% rise in pre-tax profit for the six months ended March 31, up from £9.7 million to £11.1 million.
Revenue climbed 9.1% to £60.5 million, it said at the time.
What were the fraud warnings?
Patisserie Holdings said it has been notified of "significant, and potentially fraudulent, accounting irregularities and therefore a potential material mis-statement of the company's accounts".
This significantly affected the company's cash position, with the firm saying it could lead to a "material change" in its overall financial position.
Finance chief Chris Marsh has since been suspended from his role and accountancy giant PwC drafted in to look through the company's books.
Will the bakery close down?
Patisserie Valerie will cease trading without an "immediate" cash injection, according to the bakery's top brass.
The cafe's parent company Patisserie Holdings made the admission in a market announcement today, after being slapped with a winding up petition over unpaid taxes and unearthing potentially fraudulent accounting irregularities yesterday.
Patisserie Holdings said: "The company, in conjunction with its professional advisers, has during the last 24 hours, undertaken further investigation into the financial status of the company.
"The board has now reached the conclusion that there is a material shortfall between the reported financial status and the current financial status of the business," the company added.
"Without an immediate injection of capital, the directors are of the view that that is no scope for the business to continue trading in its current form."
It said the company's directors and professional advisers are "assessing all options available to the business to keep it trading".
Patisserie Holdings said it would update the market in due course.
Source: Read Full Article