The former finance chief of Patisserie Valerie, Christopher Marsh, and his wife, Louise Marsh, have been charged by the Serious Fraud Office (SFO) in connection with the chain's collapse in 2018. Two other directors have also been charged following an accounting scandal that resulted in a £40 million financial shortfall for the company.
Patisserie Valerie's sharp downfall
The bakery chain experienced a dramatic collapse, leading to the closure of 70 stores and the loss of over 900 jobs. Only a rescue deal with private equity firm Causeway Capital saved most of the remaining stores.
Long investigation finally yields charges
The SFO launched an investigation, codenamed Operation Venom, a month after Patisserie Valerie's collapse. It has taken five years for charges to be brought against the individuals involved, including Christopher Marsh and his wife.
Conspiracy to inflate financial records
The four individuals have been charged with conspiring to inflate Patisserie Holdings' balance sheets and annual reports from 2015 to 2018. They are accused of providing false documentation to auditors and concealing the company's £10 million debt from investors and creditors.
PwC's discoveries and Grant Thornton's involvement
Accounting firm PwC's investigations unearthed fraudulent activities within Patisserie Valerie, including the creation of fake invoices and inflated sales figures. Grant Thornton, the company's auditors, have faced legal action for their role in approving the accounts.
Progress, but still a long road ahead
SFO's Director Lisa Osofsky hailed the charges as a step forward in unravelling the scandal. However, BCL Solicitors partner Richard Sallybanks warned that it could still be several years before the individuals stand trial.
THE WINNER INDITEX IT ALL
Inditex, the parent company of Zara, reported a 40% increase in profits, reaching £2.14 billion. The world's largest fashion retailer attributed this growth to a 13.5% rise in sales over the past six months, amounting to £14.5 billion. Despite challenges faced by its competitors due to weather conditions, Inditex's summer and autumn clothing collections have been well-received by customers.
BIRKENSTOCKS
German sandal brand Birkenstock, once associated with the "hippie" fashion trend, is considering a New York listing that could value the company at £6.4 billion. The decision to list in New York instead of Europe is driven by its owners' desire to make a significant profit. Birkenstock's recent collaboration with photographer Steven Meisel, featuring Kaia Gerber, has also contributed to its increased popularity.
BIGGER BAN ON METERS
Energy regulator Ofgem has extended its ban on suppliers installing pre-payment meters (PPMs) to include households with individuals over 75 years old and children under two. This decision follows reports of British Gas agents forcibly installing meters without the knowledge of vulnerable individuals. Although the ban aims to protect consumers, Ofgem's boss, Jonathan Brearley, acknowledged that removing government support may result in higher bills for some households.
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