Grant Thornton faces legal action over Patisserie Valerie audit

Grant Thornton is reportedly facing legal action over its auditing of cafe chain Patisserie Valerie, which collapsed last year following allegations of suspected fraud.

Liquidator FRP Advisory is said to have hired law firm Mishcon de Reya to explore a claim against the accountancy firm which audited the Birmingham-based chain’s accounts for 12 years before its collapse.

FRP has reportedly recently commissioned a report from Smith & Williamson into Grant Thornton’s audit of Patisserie Valerie, which suggested significant failings in its work.

A decision on whether to take Grant Thornton to court is expected to be made in the next few weeks, the Sunday Times reported.

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.