In a company update, the group said that the cash flow and profitability of the business was “materially below” that announced in the trading update immediately after accounting irregularities were uncovered at the company.
The update described the misstatement of accounts as “extensive”, with “very significant manipulation of the balance sheet and profit and loss accounts” including thousands of false entries into the company’s ledgers.
It said it would take some time before a reliable trading outlook could be completed while the work streams progressed.
The patisserie chain is working with KPMG to assist it in carrying out a review of all options available to it in order to recover from what it described as “the devastating effects of the fraud”, and to preserve value for its stakeholders going forward.
Patisserie Holdings has made a number of key personnel changes since evidence of the accounting black hole first emerged in October last year. It has appointed a new CEO, following the departure of Paul May in November, a new interim CFO, a new non-executive director, a new commercial director and a new production director.