Patisserie Valerie chief executive Paul May resigns as food industry veteran hired to turn embattled cake shop around

The chief executive of troubled cafe chain Patisserie Valerie has resigned.

Paul May has stood down with immediate effect and will be replaced by turnaround specialist Stephen Francis, the former chief executive of pork producer Tulip. 

Patisserie Valerie chairman Luke Johnson said: "I am delighted to welcome Steve Francis as new chief executive at Patisserie Holdings.

"He has a strong track record of restoring value in turnaround situations, especially in the food industry, and the board looks forward to working with him in the revival of the business."

Reports recently emerged that May and finance boss Chris Marsh, who was suspended before resigning last month, were issued twice as many shares as was disclosed in official filings.

May's resignation comes after the company suspended its shares as it announced a shock £40m hole in its finances last month.

Johnson scrambled to find emergency funding to keep the bakery afloat, putting in £20m of his own money in a series of loans.

He admitted at a shareholder meeting at the start of this month that the business had been within three hours of collapse.

Investors voted through a rescue deal at the crunch meeting earlier this month, where Johnson was accused of spreading himself too thin.

He has reportedly agreed to give up some of his other directorships, of which he holds about 20, and forego his £60,000 annual salary in light of the scandal.