ACCOUNTING IRREGULARITIES
Patisserie flops on disclosure of wonky accounts
The odd thing is that there does not seem to be anything out of the ordinary about the structure and accounting of Patisserie Holdings
London’s less regulated Alternative Investment Market has had more than its fair share of corporate scandals over the years. But rarely one as surprising as what has befallen Patisserie Holdings. Known for its Patisserie Valerie cake shops, the British company part-owned by entrepreneur Luke Johnson revealed on Wednesday that it had suspended its CFO. This was after uncovering "significant, and potentially fraudulent, accounting irregularities". Its financial year ended on September 30. Patisserie Holdings may have exaggerated its cash position. It is probable the £446m market cap – the stock exchange ticker is CAKE – will go very soggy when trading resumes. Johnson, who is also chair of Patisserie Holdings, has a decent track record in buying and selling companies and he comments frequently on business matters in British newspapers, including on how to spot corporate frauds. His 37% stake, plus the 4% stake held by CEO Paul May, will at least assure investors that management has sk...
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