Patisserie Valerie owner Patisserie Holdings has said it cannot continue to trade in its current form unless it gets an immediate cash injection.
The company said it has spent the past 24 hours probing the financial state of the company following yesterday’s announcement of serious – and potentially fraudulent – accounting irregularities.
In a new statement issued this afternoon (11 October), the Patisserie Holdings board said there was a shortfall between its reported financial status and its actual position.
“The board has reached the conclusion that there is a material shortfall between the reported financial status and the current financial status of the business,” it stated.
“Without an immediate injection of capital, the directors are of the view that there is no scope for the business to continue trading in its current form.”
The company said its directors and advisers were now assessing all options available to keep the business trading.
Patisserie Holdings had warned yesterday that the discovery of the accounting issue had “significantly” impacted its cash position.
The company’s chief financial officer Chris Marsh has been suspended from his role, and trading in the business’ shares on AIM have also been halted.
Yesterday, the board became aware of a winding-up petition filed at the High Court relating to £1.14m owed to HMRC by Stonebeach Limited, the company’s principal trading subsidiary.