Patisserie Valerie chairman to refuse salary in wake of accounting scandal

The chairman of Patisserie Valerie has said he will forego his annual salary as he attempts to revive the crisis-hit cafe chain following an accounting scandal.

Luke Johnson, who holds a large stake in the Birmingham-based business, told the board he would not collect his £60,000 salary for the rest of his time at the group.

He will also give up directorships at other firms amid criticism he holds too many, according to reports.

It is believed Johnson holds more than 30 active directorships at other firms.

The news comes days after angry shareholders backed a rescue plan for the business at an emergency meeting.

More than 99% of shareholders backed a plan to issue £15m of new shares to recapitalise the company but accused Johnson of “holding a gun” to their heads over the rescue deal, saying they feel cheated that new investors are getting a cut-price deal on a share in the business.

It is three weeks since the Birmingham-based business suspended trading of its shares on the Alternative Investment Market and launched an investigation into suspected accounting irregularities.

Despite their support for the rescue package last week, investors continue to demand answers as to how a £40m black hole appeared in the company’s accounts, and the discovery of two “secret” company bank overdrafts.

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