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Patisserie Valerie administrators face accounting chaos

30/01/2019 · Patisserie Holdings PLC (CAKE) 

AIM News

Selection of cakes at Patisserie Valerie shop
Administrators KPMG still have a very muddled picture of the state of the accounts at Patisserie Valerie. Recent news flow implies that it is nearly impossible to ascertain real numbers from several stores over the last few years.

Patisserie Valerie’s accounts are in a state of carnage. Reports suggest that KPMG has only managed to compile two months of reliable financial data since being appointed as the administrator on 16 January. That’s hardly surprisingly considering PwC – which spent two months reviewing the company – couldn’t come to any firm conclusions about the depth of the scandal. But still, this lack of clarity has implications for many parties.

For example, potential buyers, who might be looking to pick up the remains of Patisserie Valerie on the cheap are unlikely to buy the entire portfolio without clear financial information. Instead, interested parties are more likely to pick off individual outlets. That said, their choices may be limited – recent news flow implies that it is nearly impossible to ascertain the real trading of several stores.

The shareholders considering legal action are also at a dead-end unless their lawyers and litigators gain an understanding of what they are claiming against. While…

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