The chair of Patisserie Valerie, Luke Johnson, has waived his wage and pledged to surrender a few of his different jobs as he battles to show across the cake store after an accounting scandal.
The multimillionaire has informed the board of the chain’s listed father or mother firm that he is not going to accumulate his £60,000 annual wage for his remaining time on the group. Johnson, 56, has been underneath strain from indignant shareholders for the reason that group’s shares have been suspended final month.
Patisserie Holdings, the cake store’s father or mother firm, which has greater than 200 cafes and practically 3,000 workers, has been compelled to boost greater than £25m in new money by discounted share placings and an emergency mortgage from Johnson after saying that “fraudulent exercise” had been uncovered that left the enterprise near collapse.
At a stormy emergency shareholder assembly final week Johnson was requested if he deliberate to scale back his actions. He informed shareholders he now had just one govt place, as chair of Patisserie Holdings. However the entrepreneur sits on the board of not less than 17 working firms, greater than half of which he chairs.
If all subsidiaries are included the quantity rises to 34, together with Stonebeach, a subsidiary of Patisserie Holdings, which was served with a winding up order by tax authorities in relation to an unpaid invoice. Johnson solely moved on to Stonebeach’s board after the winding up order got here to gentle and the corporate admitted it was teetering getting ready to collapse having discovered a multimillion-pound black gap in its accounts.
Johnson has already stepped down from boards of theatre advertising and marketing group AKA, theatre firm Era of Z and Beak Avenue Movies in addition to swimming goggles maker Zogg, based on the Mail on Sunday which first reported Johnson’s pay lower.
It’s understood that he plans to relinquish additional board positions in coming weeks.
He stays chair of not less than 11 boards together with London’s Almeida theatre, the Institute of Most cancers Analysis, entrepreneurial campaigning teams Startup Britain and 5 investments by Danger Capital – his funding firm – together with Gail’s bakery proprietor Bread Holdings, Brighton Palace Pier and Majestic Bingo, in addition to Patisserie Holdings.
He’s additionally a non-executive director at theatre manufacturing funding agency Fiery Dragons; Brompton Bicycle; property agency Galliard Group; Elegant Inns Group and Forestrox, an organization linked to theatre entrepreneurs Man Hornsby and William Burdett Coutts.
Johnson is main an inner inquiry involving forensic accountants from PricewaterhouseCoopers. Patisserie Holdings’ finance director, Chris Marsh, resigned final month. Shortly earlier than his resignation, Marsh was arrested on suspicion of fraud by false illustration.
The Critical Fraud Workplace has confirmed that it has opened a felony investigation into a person however has not given additional data.
The corporate fought off the winding-up petition however has confronted anger from buyers whose shares have been devalued by the sale of discounted inventory to fund an emergency money injection.