Crisis-hit Patisserie Holdings has said suspended finance director Chris Marsh has been arrested by police.
It follows the owner of high-end café chain Patisserie Valerie reporting yesterday that the business would cease to trade without an immediate injection of capital after the board and its advisers found “a material shortfall between the reported financial status and the current financial status of the business”.
Patisserie Holdings suspended its shares in relation to an investigation into potential accounting irregularities and warned investors of possible fraud earlier this week, after it said it became aware of a petition by HMRC to wind up the business.
As a result of unpaid taxes of £1.14m, last month HMRC filed the petition against Stonebeach Ltd, the principal trading subsidiary of Patisserie Holdings, with a hearing date set for the end of October for a court order to liquidate the business and its assets.
Marsh was arrested on Thursday night before being released on bail.
Patisserie Valerie operates 158 outlets in the UK, including department store concessions, according to its website.
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