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.