Raymond Doherty 27 Jun 2017 09:37am

KPMG resigns as auditor of Pret a Manger

EY has been appointed to replace KPMG as auditor of the UK sandwich and coffee chain

KPMG has resigned amid rumours that Pret is set for an IPO on the New York Stock Exchange.

According to a report in the Sunday Telegraph, the Big Four firm had to step down because it also does non-audit work for Pret. This would fall foul of strict Security & Exchange Commission (SEC) rules, which forbid auditors from carrying out additional services for listed companies.

A KPMG spokesman said, “Our relationship with Pret remains strong and we have been delighted to provide audit services to the company for more than a decade. We will work closely with Pret to support the transition of the audit to EY.” EY said it wasn’t willing to comment on the decision.

Private equity firm Bridgepoint Advisers – which owns Pret – instructed several banks to advise on a possible IPO later in 2017, it was reported in May.