PATISSERIE Valerie’s former finance chief and his wife have been charged by the Serious Fraud Office over the cake chain’s collapse in 2018.
Two other directors have also been charged over the bakery, which went bust following an accounting scandal that left a £40million hole in the company’s finances.
6
6
Some 70 stores were shut and more than 900 jobs lost before a rescue deal for most of the rest was struck with private equity firm Causeway Capital.
The Serious Fraud Office kicked off an investigation — with the codename Operation Venom — a month after the collapse, but it has taken five years to bring charges.
Christopher Marsh, the chain’s financial officer for 12 years, and accountant wife Louise Marsh were charged at home, along with financial controller Pritesh Mistry and financial consultant Nileshkumar Lad.
The SFO said all four were charged with “conspiring to inflate the cash in Patisserie Holdings’ balance sheets and annual reports from 2015 to 2018, including by providing false documentation to auditors”.
During this time, they are accused of having hidden Patisserie’s £10million of debts from investors and creditors.
Investigations by accounting firm PwC have already revealed that staff had cooked-up fake invoices from suppliers and inflated sales figures, in a move that hid the chain’s truly disastrous position.
The company’s auditors Grant Thornton have been sued by the company’s creditors for their oversight in approving accounts.
Outgoing SFO boss Lisa Osofsky said: “Patisserie Valerie’s abrupt collapse rocked our high streets.
Most read in Business
“Today is a step forward in getting to the bottom of this scandal.”
Commenting on the news, BCL Solicitors partner Richard Sallybanks said the charges were a sign that the SFO wanted to make a move before Osofsky’s departure.
But he added: “It could still be several years before the individuals stand trial.”
THE WINNER INDITEX IT ALL
INDITEX, owner of clothing firm Zara, is proving it’s still on trend after profits jumped by 40 per cent to £2.14billion.
The world’s biggest fashion retailer, with 5,745 shops, said that sales had risen by 13.5 per cent over the past six months to £14.5billion.
6
Despite rivals blaming wet weather in the UK and record heatwaves in Europe for weak sales, Inditex said that its summer clothing collections had been “very well received by our customers”.
Inditex said that sales over the past month had also increased by 14 per cent compared with last year, suggesting its autumn fashion was also proving popular.
The Spanish firm, which also owns the Bershka, Pull & Bear and Massimo Dutti ranges, has launched a new collaboration with photographer Steven Meisel, as worn by Cindy Crawford’s model daughter Kaia Gerber.
BIRKENSTOCKS
6
BIRKENSTOCK, the German sandal brand once considered a “hippie” fashion choice, could be valued at £6.4billion in a New York listing — after gaining ground with style’s in-crowd.
The shoemaker has snubbed Europe in favour of New York as its owners L Catterton, who bought it for £3.4billion just two years ago, want to walk away with a chunky profit.
Birkenstocks had an unexpected Barbie boost after the brand’s cork-bed shoes were worn by the doll and her “Weird Barbie” counterpart, above, in the summer blockbuster.
BIGGER BAN ON METERS
ENERGY regulator OFGEM has extended its ban on suppliers force-fitting pre-payment meters (PPMs) to include households with people over 75, and children under two.
Boss Jonathan Brearley has admitted some households will be paying higher bills than last year because Government support has been removed.
6
Ofgem suspended force- fitting of PPMs after The Times revealed British Gas agents breaking into vulnerable people’s homes to install meters without their knowledge.
All suppliers have signed up to a code of conduct to ensure they act fairly and responsibly.
Amanda Solloway, Minister for Energy Consumers and Affordability, said: “Bringing in mandatory protection for more vulnerable households, including those over 75, is a welcome step forward.”
PPMs have not been banned outright after suppliers said some low-income households wanted them as a means of controlling budgets.
£5M NAME OF WILKO
WILKO’S administrators will sell the retailer’s name to rival value chain The Range.
The deal is the latest in the dismantling of the 93-year old retailer, which will vanish from the high street by next month but be kept alive online.
It is understood The Range, owned by Chris Dawson, has paid £5million for the rights to sell Wilko-branded goods in its stores and online.
Poundland has bought 71 Wilko shops and B&M has bought 51 stores for £13million.
PRE-LOVE LAUNCH FOR H&M
H&M has admitted it is “part of the problem” of fast-fashion waste and plans to start selling second-hand clothes at its flagship shop in London.
H&M will launch a “Pre-Loved” womenswear collection featuring second-hand clothing from its Arket, Cos, Monki and Weekday brands.
6
The strategy has already been launched in Spain, Sweden and Germany.
Retailers are coming under increasing pressure from investors and regulators as nearly three-fifths of clothing ends up in incinerators or landfills within a year of being made, according to McKinsey research.
They are producing more than ever as social media and online shopping has meant demand for new outfits has grown at warp speed.
However, the rise of marketplace sites such as Vinted and DePop mean younger shoppers are much more comfortable with buying and selling second-hand clothes than visiting charity shops
