The Serious Fraud Office (SFO) has announced that four individuals are facing charges in connection with the collapse of Patisserie Valerie, a once-flourishing bakery chain that operated nearly 200 stores across the United Kingdom. This development comes after a lengthy investigation launched in October 2018, merely two days following the abrupt suspension of trading by the company, leading to the loss of over 900 jobs.
Among those charged is Christopher Marsh, who formerly served as the Chief Financial Officer of Patisserie Holdings, the parent company of Patisserie Valerie. The list of accused individuals also includes Christopher Marsh’s accountant wife, Louise, along with financial controller Pritesh Mistry and financial consultant Nileshkumar Lad.
The SFO has specified that the charges encompass a conspiracy to inflate the cash assets presented in Patisserie Holdings’ balance sheets and annual reports during the period spanning from 2015 to 2018. This was allegedly achieved through the provision of falsified documentation to the company’s auditors. The SFO’s statement further revealed that during this timeframe, Patisserie Valerie reported holding £28 million in accounts while concealing £10 million in debts from its investors and creditors.
The four suspects are scheduled to appear before Westminster Magistrates Court next month, where the charges will be formally presented.
Lisa Osofsky, Director of the SFO, commented on the development, stating, “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.”
It is important to note that this criminal case runs separately from broader investigations into the factors contributing to the downfall of the company. In 2021, the accountancy firm Grant Thornton faced a fine of £2.34 million from the accounting watchdog following a Financial Reporting Council’s conduct inquiry. The inquiry had also revealed a “serious lack of competence” in Grant Thornton’s audits of the cake chain.
