Page 5 - Patisserie Valerie Teaching Note
P. 5

OVERVIEW






               The first Patisserie Valerie store was opened in the Soho

               district of London in 1926 by a Belgian woman, Madame

               Valerie. It grew as part of a chain with 206 stores which
               employed some 3,000 people.


               Its swift expansion took place after Luke Johnson bought

               into Patisserie Valerie in 2006 when it had eight stores.


               Johnson grew the business and in 2014, it was listed on the

               AIM stock market for small companies.


               The collapse of Patisserie Holdings is set against the

               background of the launch of the Business, Energy and

               Industrial Strategy (BEIS) Committee’ s inquiry examining the

               future of audit in November 2018.


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               However, the 10  October 2018 saw the firm announce that
               its board had become aware of an HMRC winding-up

               petition against its principal subsidiary Stonebeach, with the

               tax body seeking a payment of £1.14m. It also discovered

               the frightening level of fraud in its accounts and suspended

               its Chief Financial Officer, Chris Marsh. The result was that

               Patisserie Holdings plc could no longer be considered a

               going concern. It needed a capital injection which Johnson
               provided. However, the rapidity of its subsequent demise

               was breath taking. As Johnson commented the fall of his

               firm was "horribly rapid".
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