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Patisserie Valerie chairman waives salary | Patisserie Valerie chairman waives salary |
(35 minutes later) | |
The chairman of Patisserie Valerie has said he will waive his salary as he focuses on reviving the cake and cafe chain after an accounting scandal. | The chairman of Patisserie Valerie has said he will waive his salary as he focuses on reviving the cake and cafe chain after an accounting scandal. |
Luke Johnson, who holds a large stake in the business, told the board he would not collect his £60,000 salary for the rest of his time at the group. | Luke Johnson, who holds a large stake in the business, told the board he would not collect his £60,000 salary for the rest of his time at the group. |
He will also give up directorships at other firms amid criticism he holds too many. | He will also give up directorships at other firms amid criticism he holds too many. |
It follows shareholder anger about a rescue deal to keep the firm afloat. | It follows shareholder anger about a rescue deal to keep the firm afloat. |
The chain, which owns 200 cafes, has been forced to raise £25m in emergency funding after it uncovered black hole in its accounts in October. | The chain, which owns 200 cafes, has been forced to raise £25m in emergency funding after it uncovered black hole in its accounts in October. |
As part of this, it issued £15m of new shares at a steep discount, but at a meeting last week some investors criticised Mr Johnson, saying they had been forced into the deal and felt cheated. | As part of this, it issued £15m of new shares at a steep discount, but at a meeting last week some investors criticised Mr Johnson, saying they had been forced into the deal and felt cheated. |
Mr Johnson, 56, also promised to focus on his chairman role "for the foreseeable future" amid concerns he has been stretched too thin. | Mr Johnson, 56, also promised to focus on his chairman role "for the foreseeable future" amid concerns he has been stretched too thin. |
The serial entrepreneur holds more than 30 active directorships at other firms, and has already quit four roles since the cafe chain's troubles emerged. | |
Patisserie Valerie's problems first emerged in early October when its owner - Patisserie Holdings - announced it had discovered "potentially fraudulent" irregularities in its accounts. | Patisserie Valerie's problems first emerged in early October when its owner - Patisserie Holdings - announced it had discovered "potentially fraudulent" irregularities in its accounts. |
Finance director Chris Marsh has since been suspended and is the subject of a criminal investigation. | Finance director Chris Marsh has since been suspended and is the subject of a criminal investigation. |
Mr Johnson was forced to lend the business £20m of his own money and later admitted it had been "three hours from going into bankruptcy". | Mr Johnson was forced to lend the business £20m of his own money and later admitted it had been "three hours from going into bankruptcy". |
Trading in the firm's shares has been temporarily halted and some are concerned the stock could plummet when it resumes. The shares were worth £4.29 before the scandal but market watchers believe they could fall as low as 60p. | Trading in the firm's shares has been temporarily halted and some are concerned the stock could plummet when it resumes. The shares were worth £4.29 before the scandal but market watchers believe they could fall as low as 60p. |
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