Patisserie Holdings could be facing legal action by investors over the bakery chains collapse Tuesday. Chris Boxall the co-founder of Fundamental Asset Management said he was “flabbergasted,” and has a “moral duty” to his clients, so he is considering legal action, he said to BBC Radio 4’s Today Programme.
Boxall is asking a lot of questions about Luke Johnsons over sight with the company, he said, “What has he and the board been doing?
“What questions were they asking at meetings, what things were they looking at, did they ever roll up their sleeves and have look at the heart of the business which you would expect from a so-called executive director which he was in this business.”
Boxall added, “This business has gone from half a billion valuation to nothing in a matter of months.”
Tuesday the company had no option but to appoint KPMG as their administrator, Johnson extended his interest free loan to ensure all January staff wages were paid.
“This loan will also assist the administrators in trading as many profitable stores as possible while a sale process is undertaken.”
Patisserie Holdings said in a statement Tuesday, “Patisserie Holdings Plc announces today that, as a direct result of the significant fraud referred to in previous announcements, it has been unable to renew its bank facilities, and therefore regrettably the business does not have sufficient funding to meet its liabilities as they fall due.”