Grant Thornton set for scrutiny as Patisserie Valerie handed to liquidators
Embattled auditor Grant Thornton is set to face renewed scrutiny as Patisserie Valerie’s liquidators prepare to pursue claims against third parties connected to a multi-million pound hole in the cafe chain’s finances.
Administrators KPMG will pass the case on to FRP Advisory later this month.
Read more: Patisserie Valerie appoints administrators for Grant Thornton probe
The financial services giant said in July that it could not investigate Patisserie Valerie’s auditor Grant Thornton due to a conflict of interests. Grant Thornton also checks KPMG’s accounts.
In a progress report KPMG said: “We expect that the liquidators will be assessing and, if appropriate, pursuing potential claims against third parties in respect of the apparent accounting misstatements that were uncovered in October 2018.”
FRP announced in July that its investigation, led by senior partners Paul Allen and Geoff Rowley, will explore legal claims in an attempt to return money to investors who lost funds when the business collapsed.
In March KPMG said “there may be sufficient grounds to establish potential legal claims against a number of parties” which “may include Grant Thornton”. Grant Thornton declined to comment.
Grant Thornton is currently under investigation by the Financial Reporting Council, which is looking into the audits it did of the bakery chain’s finances in 2015, 2016 and 2017.
Patisserie Valerie collapsed into administration in January following the shock revelation of “significant fraud” at the company and the discovery of a £40m hole in its finances.
Read more: Patisserie Valerie overstated finacial position by £94m
However, KPMG revealed in March that the missing money actually totalled £94m.
The Serious Fraud Office has launched a criminal probe into the scandal.
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