RSM replaces Grant Thornton as Patisserie Valerie auditor

Patisserie Valerie has confirmed it is to appoint RSM as its new auditor as the crisis-hit café chain deals with a Serious Fraud Office investigation into a £40m black hole in its accounts.

The Birmingham-based chain suspended trading of its shares in October after the discovery of “significant, potentially fraudulent accounting irregularities” which brought it to the brink of collapse.

Parent company Patisserie Holdings started the search to replace Grant Thornton last month.

Grant Thornton’s audits of Patisserie Holdings’ accounts for 2015, 2016 and 2017 are under investigation by the Financial Reporting Council.

In a stock market announcement, Patisserie Valerie said: “Further to the recent press speculation, Patisserie Holdings confirms that it intends to appoint RSM Tenon Group as new auditors in replacement of Grant Thornton once the necessary professional processes have been completed.

“A further announcement will made once the appointment is effective.”

The discovery of suspected accounting irregularities led to the company’s share suspension and the arrest of Chris Marsh, its chief financial officer, who is now on bail and is being investigated by the Serious Fraud Office.

Marsh resigned in October, later followed by chief executive Paul May.