Grant Thornton faces £200m legal action following Patisserie Valerie collapse
Accoutancy firm Grant Thornton is facing legal action which could see it hit with a £200m bill over the collapse of Birmingham-based Patisserie Valerie.
The liquidator of Patisserie Valerie, FRP Advisory, is suing Grant Thornton after it was told by creditors that it was negligent in preparing the cake maker and retailer’s accounts between 2014 and 2017.
FRP says it has hired City law firm Mischon de Reya to sue Grant Thornton for damages thought to be in the region of £200m.
The claim has come to light in an update to the creditors of Patisserie Valerie from FRP filed in December.
A Grant Thornton spokesperson told The Telegraph: “A Grant Thornton spokesman said: “We will rigorously defend the claim. Patisserie Valerie is a case that involves sustained and collusive fraud, including widespread deception of the auditors. The claim ignores the board’s and management’s own failings.
“As the matter is subject to an ongoing FRC investigation and civil claim, we are unable to comment further.”
Patisserie Valerie collapsed into administration in January last year after the Discovery of a £40m hole in its finances.
But KPMG, which was originally appointed as liquidator, later announced that the missing money actually totalled £94m.
FRP replaced KPMG in September after the latter said it could not investigate Grant Thornton due to a conflict of interest.
KPMG had previously said there might be sufficient grounds for potential legal claims “against a number of parties” – which it said may include Grant Thornton.