Audit firm Grant Thornton slammed a lawsuit over his role in the failure of Patisserie Valerie
Audit firm Grant Thornton has been smitten with a lawsuit over his role in Patisserie Valerie’s bankruptcy.
Bakery chain administrators have filed a claim with the High Court against Grant Thornton for “negligent checks” of his accounts.
‘Negligent audits’: Patisserie Valerie administrators have filed a claim against Grant Thornton in the High Court
Patisserie Valerie collapsed last year after a £ 40 million hole was found in her accounts, possibly due to fraud. Grant Thornton is also being investigated by the accounting watchdog on the collapse.
FRP Advisory, the trustee, confirmed that the liquidators “have filed a claim against Grant Thornton in connection with their negligent audits of the group companies’ financial statements.”
Grant Thornton said: “We are aware that a claim has been made, but it has not been served. However, we will rigorously defend the claim once we receive it. ‘
Patisserie Valerie started out as a bakery in Soho in 1926, before being bought by entrepreneur Luke Johnson in 2006. It was listed on the stock exchange in 2014.
David Dunckley, chief executive of Grant Thornton UK, ruffled the feathers last year when he said during a hearing with MPs that it was not the auditor’s role to expose fraud.
The audit watchdog, the Financial Reporting Council, unveiled plans last month to increase the burden on accountants to detect fraud.