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Patisserie Valerie scandal: 5 individuals arrested

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5 individuals have been arrested and questioned over alleged accounting fraud on the Patisserie Valerie chain, the Critical Fraud Workplace has stated.

The arrests came about final Tuesday, 18 June, in a joint operation with police, the SFO stated.

The transfer comes eight months after the firm’s former finance director, Chris Marsh, was arrested and freed on bail.

Patisserie Valerie went into administration in January and was purchased for £5m by Causeway Capital.

The collapse adopted the invention of an enormous black gap within the agency’s accounts, ultimately valued at £94m.

After it went into administration, the cafe chain was discovered to have overstated its money place by £30m and did not disclose overdrafts of practically £10m.

Patisserie Valerie’s former chairman, Luke Johnson, who was additionally its largest shareholder, wrote earlier this month in his column for the Sunday Times that that he had thought-about fleeing the UK after the scandal broke and feared turning into “a pariah within the enterprise world”.

The Sunday Occasions reported that Mr Johnson was not amongst these arrested by the SFO.

Butter again

“On Tuesday 18 June, as a part of a joint operation with the Hertfordshire, Leicestershire and Metropolitan Police Companies, the SFO arrested and questioned 5 individuals in reference to the continuing investigation into people related to Patisserie Holdings,” the SFO assertion stated.

The cafe chain had 206 retailers and three,000 workers when it collapsed.

It now has 96 retailers nonetheless in operation. Causeway Capital, an Irish personal fairness agency, has stated it should revamp the menu, present new uniforms for employees and increase on-line gross sales.

Final week, Causeway revealed that Patisserie Valerie was in such dire straits that managers had ordered puff pastry be made from margarine rather than butter as a cost-cutting measure.

That is now being reversed. “We’ll take each single recipe aside and put it again collectively,” stated Matt Scaife from Causeway.

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