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Five arrested in investigation into collapse of Patisserie Valerie

British cafe chain was plunged into crisis after discovery of accounting irregularities

A man walks past a branch of Patisserie Valerie in London, Britain, in October 2018. File photograph: Simon Dawson/Reuters

Sun Jun 23 2019 - 16:25

Five more people have been arrested in the investigation into the collapse of British cafe chain Patisserie Valerie after accounting irregularities were discovered last year, the UK's Serious Fraud Office (SFO) said on Sunday.

The new arrests bring the total detained to six. Patisserie Holdings' former finance director Chris Marsh, who had helped grow the company from eight stores to more than 200, was arrested and released on bail over the scandal last year.

Police did not name those arrested this month.

“On Tuesday, June 18th, as part of a joint operation with Hertfordshire, Leicestershire and the Metropolitan Police Services, five individuals were arrested and interviewed in connection with the Serious Fraud Office investigation into individuals associated with Patisserie Holdings,” the SFO said in a statement.

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The chain was plunged into crisis in October 2018 when it discovered accounting irregularities and said tax authorities were pursuing its main trading arm for more than £1 million.

KPMG was appointed as the administrator, and in February the bakery chain was sold to Irish private equity fund Causeway Capital and the Philpotts brand to food retailer AF Blakemore.

Britain's accounting watchdog, the Financial Reporting Council, said in November it was investigating Grant Thornton's audit of Patisserie Valerie for 2015-2017.

Grant Thornton announced its own independent review into the issue and a £7 million revamp of its UK accounting operations to improve standards. – Reuters

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