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Started: Pokerchips, 22 Apr 2021 12:45
Last post: Pokerchips, 22 Apr 2021 12:45
Serious Fraud Office investigation into Patisserie Holdings Plc, associated entities and individuals - questionnaire
The purpose of this questionnaire is to gain information from investors which might assist in the investigation. We intend to review the information provided and, if required, may contact you to request further details. This could be via an interview potentially resulting in a witness statement and/or victim impact statement
https://www.sfo.gov.uk/cases/patisserie-holdings-plc/
https://venominvestors.egressforms.com/
Started: Dodgiedealer, 17 Feb 2019 20:20
Last post: Bobsto12, 17 Mar 2019 11:47
Any active pi should be horrified about all this. Audit opinions look like a waste of ink...how can you decide anything if figures can be so wrong.
"....with business rates and VAT bills going unpaid. Between £10m and £12m was owed to HM Revenue & Customs."
It really is a disgrace and to think some of the BOD sold shares at inflated prices......blinded by greed and the smell of success.....
Someone took the pi** and no one seems to have noticed.......hard to believe
Luke Johnson seems to have delegated and failed to oversee what was happeneing
Expensive mistake
Look forward to seeing the list of names and seeing if this goes wider than finance team
Up to six people face arrest over the Patisserie Valerie scandal, it can be revealed.
Their names are highlighted in a report by the accountant PwC into the alleged fraud at the cake shop chain. They are said to have signed fraudulent cheques and sent emails discussing fabricating invoices.
The revelation is the latest chapter in the biggest AIM scandal in recent memory.
Patisserie Valerie collapsed into administration last month, three months after discovering a £40m hole in its accounts. Trading of its shares was suspended in October and it was revealed that cheques worth millions of pounds had been used to artificially inflate the company’s cash reserves.
The Serious Fraud Office has already made one arrest. A further five people are understood to be under investigation. Three are said to have been junior staff.
They do not include the former executive chairman and Sunday Times columnist Luke Johnson, or non-executive directors Lee Ginsberg and James Horler, who are understood to have been interviewed as witnesses and not suspects.
According to a source, the suspected fraud involved the double-counting of voucher sales to inflate revenues and the manipulation of costs, with business rates and VAT bills going unpaid. Between £10m and £12m was owed to HM Revenue & Customs.
Up to 15 secret bank accounts are said to have been used to disguise the shortage of cash.
Patisserie Valerie was bought out of administration last week by Irish private equity firm Causeway Capital, preserving nearly 2,000 jobs.
The Sunday Times
Started: chilting, 16 Mar 2019 20:24
Last post: chilting, 16 Mar 2019 20:24
How the hell did PV get a £94m black hole in its accounts without the Grant Thornton, Johnson, May realising.
Full scale enquiry needed now I think - alright we risk all our investment when we invest in equities but this is beyond the pail
https://www.bbc.co.uk/news/business-47591082
Started: goinglarge, 14 Feb 2019 10:08
Last post: Ipad, 15 Feb 2019 09:50
i think his shares were worth about £170m and then he put in more money to keep it going. But probably just as important he's completely lost his reputation. Would anyone invest in him again ?
Chi
Doubt Johnson is out of pocket- had enough out - options. have memories of him years ago with Primar -e - I lost - he didn't.
What surprises me is that the French Patisserie is an attrraction. The window looks gorgeous but the eating reveals the lack of fruit/flavour etc. And the French attraction at the moment is not high - Macron is not an appealing macaroon.
Sadly no joy for us - then what is new!
At least the staff will be ok and the brand remains - that's the good news.
Johnson and May are big losers - even better news.
Small investors are shafted through no fault of our own - very bad news - again!!!
The banks and creditors will be paid out first , so no way shareholders will get anything.
Breaking news that PV has been bought by a private equity company which is great news for the staff. Let’s hope Paul May and Luke Johnson do not get any proceeds from the price paid. Both will have heavy losses that they will no doubt us as tax write offs but will hopefully have learnt an important lesson about what happens when you both get greedy and exploit staff and shareholders?
Started: goinglarge, 14 Feb 2019 19:41
Last post: goinglarge, 14 Feb 2019 19:41
The link below on Luke Johnson’s Risk Capital website says it all!
https://riskcapitalpartners.co.uk/portfolio/patisserie-holdings-2/
Started: knicol46, 14 Feb 2019 11:29
Last post: knicol46, 14 Feb 2019 11:29
Started: Deepestblue, 9 Feb 2019 16:35
Last post: Ipad, 11 Feb 2019 09:18
But please don't rebrand.
Yep, it looks like Costa want it - 121 fitted out up and running high street shops in good locations for roughly £150 grand each plus a bakery and other assets - what's not to like - a simple refit and some staff training - great !!!
And now according to the FT its bye bye Mr Ashley!
I am not invested here but saw this on news. GLA
https://www.bbc.co.uk/news/business
Last post: Bobsto12, 6 Feb 2019 09:38
I think the heritage was violated when private equity bought it.
Recent events are a violation of a rich heritage.
https://www.bbc.co.uk/news/business-47094831
Hi Ipad,
Almost certainly you could but...................... I will make two points.
1/ you can only audit what is put in front of you, some companies change their auditors annually and the figures are false.
2/ some auditors employ junior to actually do the audit and have little experience what to look for, hence "wool" is pulled over eyes.
Many years ago I worked for (& resigned) for a company (ceased trading) who accounts were fraudulently "created"
As an ex auditor I would love to review the audit files. Bet I could smell a rat in about half an hour !
Started: Deepestblue, 3 Feb 2019 15:49
Last post: chilting, 3 Feb 2019 22:29
Very poor show - store managers didn't even get their bonus payments from last October.
Hang you heads in shame Luke Johnson and Paul May.
Good luck to Unite in their claim for unfair dismissal.
BBC News - Patisserie Valerie: Redundant staff 'not receiving final pay'
http://www.bbc.co.uk/news/business-47107659
Started: 50glass, 30 Jan 2019 10:15
Last post: Analysister, 2 Feb 2019 10:53
I read the article in the Times this week about Paul May’s motor racing team exploits along with his son. With “PatVal” splashed on the side of their racing car!!! According to LJ’s quote in the article Mr May paid for this himself....
So Luke Johnson and Paul May own the Tunbridge Wells freehold and they did not declare this in the accounts. Another example of these 2 directors finding ways of taking cash out of the business with total disregard for the fact that this was a listed company. Pay your staff minimum wage and take out as much cash as possible in as many ways as possible. Unfortunately for them they pushed it too far and brought the whole thing down
They also say that the company refused to share the PWC report with the banks. I wonder what was in it?
Sorry Chit
Not so! - Cursory checks ! If so never put a penny but under the mattress.
Even worse - it seems Johnson owned property/ies let to CAKE. - again not disclosed.
Related party?? Signed off by Johnson = What a scam = CVR another example!!
Started: Ipad, 1 Feb 2019 14:31
Last post: Laughton, 1 Feb 2019 15:09
Actually that's a really interesting question becasue, of course they must have known. It's inconceivable that a landlord wouldn't have known that one it's tenants had not paid rent for 4 years. Someone in accounts would have covered themselves by making sure that non payment was agreed by those higher up. And if those higher up did agree to it then why did they? Surely the only possible reason is that they knew that the tenant couldn't afford it.
Just read in the times that Johnson and May owned the freehold of one of the PV shops. Conflict of interest ? Yes. But no rent had been paid for 4 years. Did they not know ?
Started: chilting, 27 Jan 2019 08:12
Last post: chilting, 30 Jan 2019 17:29
I guess buying this chain would be a no brainer for one of the big coffee/bakery chains - Greggs would be obvious - stores are fitted out, keep the staff, a simple rebrand - its just the price that has to be right.
And of course the media is now reporting that Mike Ashley is bidding for Patisserie Valerie!
Seriously.
I nearly spat my tea out laughing when I read it..
Yes just all delivered in by lorry... Ive been returning from nightclubs etc and seen them unloading it all lol
One for mike ashley?
Yes and there are some disgruntled now former employees saying the cafes are faux posh. Nothing is fresh it's all bought in frozen just like cheap pub food from 3663.
Oh dear - it seems the illustrious founder was the product of a marketing man's inagination - talk about house of cards!
https://www.bbc.co.uk/news/business-46821488
Started: LGO-fan, 26 Jan 2019 23:27
Last post: LGO-fan, 26 Jan 2019 23:27
A lot of people must have been involved. More arrests soon ?
Patisserie Valerie report talks of fake invoices and ledgers
Started: Preston, 24 Jan 2019 17:06
Last post: jl5006, 26 Jan 2019 16:25
Bobst
The Gov't agency was the Audit commission and that did more of a political job with dear Gordon B insisting on "light touch " auditing. That quango no longer exists. All tick boxes - verbal assurances. Maybe that was GT also.
Well the Times is now saying that HMRC raised issues with the company about suspicions of fraud and forged documents 2 years plus ago so there really is no excuse for the directors or auditors not to have spotted anything. Indeed if it hadn't been for HMRC 'S winding up petition then maybe it wouldn't have come to light yet.
Makes you wonder if audits should be run by some arm of government as the current arrangements simply don't work.
Sorry for all on here that have lost money through the failure but there seem to be some misguided accusations flying around – this company have committed criminal fraud, and have therefore presumably misled with intention both auditors, regulators and investors alike. Nobody knows how complex the fraud is, so don’t know whether GT or others could have/should have spotted this.
The other notion that institutional investors won’t care about this because it’s not their own money is utter nonsense – this will be a major hit to performance to many UK managers and it’s their reputation/name above the fund. Nobody likes to lose money. The amount of work that most managers and their analysts do is typically considerable, but again, it’s hard for someone to spot fraud from provided numbers that in theory comply to FCA regulations etc. If investors had to start from a position of first deciding whether reported numbers were fraudulent then liquidity would disappear pretty quickly. Thankfully, this is very much the rare exception and not the norm, despite CAKE being a painful trade for many I’m sure.
Started: Smell.yer.Maw, 24 Jan 2019 11:16
Last post: Smell.yer.Maw, 24 Jan 2019 11:16
''Luke Johnson, the multimillionaire chairman of collapsed cafe chain Patisserie Valerie, has extracted more than £40m from the business since the cafe group floated on the stock market less than five years ago''
Nice work if you can get it. Cannot see him head in hands worrying about his next slab of sponge cake and coffee!
Started: knicol46, 23 Jan 2019 20:42
Last post: H-hi, 24 Jan 2019 09:37
Nice Ponzi scheme, Cake box must be doing the same thing too but I hope I’m wrong. They over expand just to gain hype and high revenue but at a huge loss!
I hope all holders will set up a Shareholders action group and sue the Directors and the Auditor;s for all they are worth.
auditors of Patisserie Valerie - they are either 100% incompetent or its not an act.
Started: LGO-fan, 24 Jan 2019 02:49
Last post: LGO-fan, 24 Jan 2019 02:49
Started: knicol46, 23 Jan 2019 20:32
Last post: knicol46, 23 Jan 2019 20:32
of the sofa! The auditors had millions of pound coins down the sofa - didn't find any, not one!
Started: knicol46, 23 Jan 2019 20:29
Last post: knicol46, 23 Jan 2019 20:29
Grant Thornton UK LLP - they done a remarkable job at CAKE, just pressed print and collected the cheque buy the look of it.
Last post: Theanalyzer, 23 Jan 2019 20:11
Er the CFO has been arrested already
A long Jail sentence should be mandatory for these crimes.
20 years Jail term would send the message.
half a billion pounds written off, and it seems no individuals are at fault and no criminal charges.... Is it really still that easy to rip off investors? Hopefully the SFO step in like that did with the Torex rip off that I witnessed. https://www.sfo.gov.uk/2013/06/21/final-conviction-torex-retail-false-accounting-case/
Started: vilage_idoit, 23 Jan 2019 12:21
Last post: LGO-fan, 23 Jan 2019 18:48
Would like to add my commiserations to all. This used to be such a great business a couple of years ago. I sold out a long time ago because I felt Luke Johnson was too occupied with either other business (and later politics), and consequently wasn't focused on CAKE anymore. They day he said to the press that there was more than Patisserie Valerie in life, is the very day I sold out. I believe in focus, and if the founder has better things to do, I will invest in better shares. It now transpires that the management team got away with too many things that should have been picked by the board. Lack of focus, lack discipline, alseep on the job....the consequences are massive. I only hope for all SH, that this bird rises like a Phoenix from it's ashes. It is very unfair - sorry to all.
Started: goinglarge, 23 Jan 2019 18:11
Last post: goinglarge, 23 Jan 2019 18:11
Love the games that administrators play. Offload all the underperforming sites, say that there is lots of interest in the remaining business and let me guess, their preferred purchaser will be from a former major shareholder or director. The buyers make loads, the administrators take a large fee and the small shareholders get 1p in the £ in 3 years time. All legal of course
Started: knicol46, 23 Jan 2019 07:34
Last post: Bobsto12, 23 Jan 2019 16:15
Yes its extreme but it's hard to criticise the Chinese when you see all the dodgy stuff that goes on here virtually unpunished. The city of London used to pride itself on being straight "my word is my bond", now its teetering on the brink of credibility thanks to some very greedy people.
The saddest thing about these (too frequent) occurrences ... is that the results of the investigative audit are never made public. Frankly it is quite hard to see how Grant Thornton could have failed to spot this fraud given the simplicity of the business model. Yes CAKE were expanding so could have been hiding some bogus value in the Plant & Equipment figures, maybe 3-4mm per year for past few years, but the only figure that was seriously increasing y-o-y to represent the seemingly great profits and margins being made was CASH. If the auditors didn't validate the Cash in Bank figure then they are not only negligent but incompetent.
Will be interesting to see the Administrators comment on the role of the Auditors given the “000’s” of fraudulent entires. No doubt the auditors will hide behind the directors “letter of representation” but as with Carillion and Afren it merely shows that auditor’s reports carry little value to shareholders. As a finance director for almost 20 years I still find it difficult to believe this can have been carried out by a single individual or board member unless controls were absolutely none existent in which case the audit should have picked this up.
I thought at the time those swooping in to buy shares at 50p were a bit silly - sorta like giving a mugger your phone when he only asked for your wallet. In a just world the directors would be held accountable for this. Maybe Mr Johnson was too busy making political donations towards Brexit to do his job properly? I suppose most of the investors were institutional holders i.e. pensions of ordinary people so this loss will be absorbed into slightly lower fund returns. However as an individual investor this makes me even more wary of companies with 'too good to be true' numbers, apart from that this was pretty much impossible to second-guess. Unless those that allowed this to happen are punished something like this will happen again. Guaranteed.