Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2023
Serious Fraud Office prosecution
The Serious Fraud Office charged Christopher Marsh, Louise Marsh, Pritesh Mistry and Nileshkumar Lad with conspiracy connected to alleged inflation of cash figures in company accounts and annual reports and the provision of false audit documentation.
2021
Grant Thornton fined over Patisserie Valerie audits
Fine or penalty
The Financial Reporting Council fined Grant Thornton over its audits of Patisserie Valerie from 2015 to 2017, saying they missed red flags and failed to challenge the cafe chain's management. The regulator reduced the fine from £4 million to £2.34 million due to mitigating factors.
Company response
Apology — Grant Thornton
“We regret the quality of our work fell short of what was expected of us in this instance,” Grant Thornton said.
Source excerpt
The FRC said Grant Thornton’s audits during 2015, 2016 and 2017 missed “red flags” and failed to stand back and challenge the management of the cafe chain, whose collapse FRC said led to the closure of 70 stores and more than 900 job losses.
The Financial Reporting Council (FRC) said it was fining Grant Thornton 4 million pounds ($5.47 million) but would cut it to 2.34 million pounds due to mitigating factors, as well as imposing non-financial measures to improve its procedures.
2020
Audit scrutiny and Grant Thornton sanction
The Financial Reporting Council investigated Grant Thornton’s audits of Patisserie Holdings. Grant Thornton was later fined £2.3 million after findings that it had missed warning signs and failed to sufficiently challenge information supplied by management.
2019
Collapse into administration
After banks failed to reach an agreement with the company, Patisserie Holdings entered administration. Around 70 locations closed and approximately 900 jobs were lost.
2018
Patisserie Holdings accounting irregularities
The listed parent suspended its shares after discovering potentially fraudulent accounting irregularities and a material gap between its reported financial position and its actual condition. The company later disclosed previously unreported overdrafts and sought emergency funding.