Patisserie Valerie director and his wife among four charged in fraud 'scandal' over bakery collapse

The high street chain collapsed in 2018. Credit: PA

Patisserie Valerie's former director and his wife are among four people charged with fraud, over the bakery's collapse.

The Serious Fraud Office (SFO) charged former director and Chief Financial Officer of Patisserie Holdings Plc Christopher Marsh, his wife, accountant Louise Marsh, and Financial Controller Pritesh Mistry and financial consultant Nileshkumar Lad.The high street chain collapsed in October 2018, closing 71 stores and causing 900 people to loose their jobs when its debts were revealed. 

Two days after it went into liquidation, the SFO began their investigation into the company's finances under the codename “Operation Venom”.

Patisserie Valerie cakes on display Credit: Nick Ansell/PA

On Wednesday, the SFO charged all four suspects with conspiring to inflate the cash in Patisserie Holdings’ balance sheets and annual reports from 2015 to 2018.

This included providing false documentation to the company’s auditors.

The SFO said that the company had reported holding £28 million in its accounts, but did not tell investors and creditors about £10 million in debts.

The defendants are due to appear at Westminster Magistrates’ Court on October, 10 to hear the charges against them.

Director of the SFO, Lisa Osofsky said: “Patisserie Valerie’s abrupt collapse rocked our high streets – leaving boarded-up shops, devastating job losses and significant investor losses in its wake.

"Today is a step forward in getting to the bottom of this scandal.”

Grant Thornton, which had been Patisserie Holdings’ auditor for more than a decade was fined £2.3 million by the Financial Reporting Council in 2021. The audits had “missed red flags,” the FRC said.

Lad, Mistry and Mr Marsh were also charged with five counts of fraud by false representation, and one count of making and supplying articles for use in frauds.

Mr Marsh faces a further charge of making false statements as a company director.

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