Investors push for independent inquiry into £40m hole in Patisserie Valerie accounts

Leading investors in crisis-hit cake retailer Patisserie Valerie want chairman Luke Johnson to give up control of an internal investigation into a £40m hole in its accounts over concerns that the review is not sufficiently independent.

Invesco, a top ten shareholder in the Aim-listed company, has told Johnson and the board of Patisserie Holdings, the parent company, to hand over the investigation to a law firm or an independent investigation firm during talks last week, according to reports.

The crisis-hit chain was saved from collapse earlier this month after Johnson joined forces with investors to plug the firm with cash.

Johnson made £20m available in emergency funding to prevent the company’s collapse, keeping its 200 stores open while securing 2,800 jobs.

Shareholders, including fund managers Schroders, Invesco Perpetual and Miton, bought in at 50p-per-share to provide £15.7m of funding.

Its shares were frozen after the company’s debt and potential fraud were uncovered.

Suspended finance director Chris Marsh was arrested on suspicion of fraud shortly after. He has since been bailed.