Raymond Doherty 20 Dec 2018 11:19am

RSM takes on Patisserie Valerie audit

RSM is set to take over as auditor of the parent company of troubled café chain Patisserie Valerie

Grant Thornton, which RSM will replace as auditors of Patisserie Holdings, is currently under investigation from the Financial Reporting Council (FRC) for its audit work in the business.

The Big Four firms declined the chance to tender for the contract, according to a report from Sky News.

Patisserie Holdings shocked the market in October when it announced that it had found “significant and potentially fraudulent” accounting irregularities in its accounts, was suspending its shares and its CFO, Chris Marsh, and had just discovered that HMRC had issued a winding-up petition against its principal trading subsidiary.

Two days later, Marsh was arrested and released on bail without charges. He has now resigned.

Since then Patisserie Holdings has uncovered two secret bank overdrafts at HSBC and Barclays which added £9.7m to the debt burden. After chairman Luke Johnson put in £20m of his own money to save the business from going under, he was forced to go cap in hand to Patisserie Holdings’ shareholders to raise an extra £15m.

As well as the FRC, the Serious Fraud Office has opened an investigation.

RSM is not commenting.