Page 19 - Patisserie Valerie Teaching Note
P. 19

Q5  Why was Mike Ashley's Sport's Direct interested in

                       Patisserie Valerie?


               A5  The founder of Sports Direct seemed intent on taking

                       over the UK's High Streets. He probably thought that

                       like his other acquisitions, companies bought from out

                       of administration, would be based on a fire-sale where

                       high levels of stock came with the purchase often with

                       the stock value out-weighing the purchase price.

               Q6  For a future buyer, the Patisserie Valerie business is a


                       difficult one because it does not have traditional stock
                       that can be piled into a lorry and sold on.


               A6  The primary stock for Patisserie Valerie is cakes which

                       is perishable.




               Q7  Did Dunckley the CEO of Grant Thornton know what

                       business his company was in?


               A7  No! The evidence given to the BEIS by Dunckley and

                       others in the industry would suggest that he did not

                       know what his company was supposed to be doing and

                       why it was doing it.


               A8  Is the relationships between the big six accountancy
                       firms too cosy?


               Q8  Yes! It is a virtual oligopolistic situation which begs the

                       question ‘quis custodiet Ipsos custodes?’  who will

                       guard the guardians? Certainly, it should not be

                       themselves.
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