• Register
Return to: Home > News > Advisory > Grant Thornton back under spotlight over Patisserie Holdings

Grant Thornton back under spotlight over Patisserie Holdings

In its latest interim report on the status of Patisserie Holdings before handing off its job of administrator to liquidators from FRP Advisory, 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.”

Previously, KPMG said in March ‘there may be sufficient grounds to establish potential legal claims against a number of parties’ which ‘may include Grant Thornton’. 

However, in its latest update, KPMG said it does ‘not expect to realise any value from the company’s investments in subsidiaries’.

Preferential claims have been estimated at £835,000 but it would appear that there are not enough assets ‘to make a distribution to preferential creditors’. KPMG also said that the £2.45m pumped into the business by Luke Johnson to pay wages and administration fees had not been repaid.

KPMG is standing down as administrator of Patisserie Holdings over a conflict of interest – Grant Thornton audits KPMG. Grant Thornton is under investigation by the Financial Reporting Council over Patisserie Holdings while the Serious Fraud Office also has an ongoing investigation into the collapse of the company.

Top Content

    South Africa: sensing new opportunities

    It has been an interesting couple of years for the profession in South Africa. A number of high-profile scandals have brought the profession and the role of auditors into sharp public focus, brewing a distrust towards accountants and a large expectations gap. Joe Pickard reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.