Accounts for Patisserie Valerie dating back to at least September 2014 contain unreliable figures on its financial performance, according to information sent to potential bidders for the stricken cafe chain.
Interested parties have been asked to put forward first round bids by Friday but so far have only limited information about the recent trading performance at the company, which fell into administration this month.
Sources told the Guardian that information sent to bidders by KPMG, which is acting as administrator, indicated only sales and profit data from after October 2018 or before September 2014 could be relied upon.
Estimates by KPMG collated from Patisserie Valerie’s electronic till system indicate that sales at established stores had fallen by 4% in the last two years and the 122 stores remaining open were on course to make a £2m loss in the year to September 2019, according to the information sent to buyers.
One source said potential buyers were “flying blind” on the details to some extent because of potential irregularities in the accounts.
Patisserie Valerie has been in crisis since October, when the company said it had uncovered a £40m black hole in its finances, which it blamed on “potentially fraudulent” accounting irregularities.
About 70 of the cafe group’s nearly 200 outlets and concessions closed immediately, with the loss of about 900 jobs. More than 2,800 further jobs are at risk.
A number of parties are said to be considering making some kind of offer for the cafe chain, apparently including Costa, the rival business bought by Coca-Cola last summer.
Most parties that have expressed an interest are thought to want only a handful of sites. It has been reported that Mike Ashley’s Sports Direct is considering a bid, but it is understood no formal offer has been tabled.
Potential bidders have not been given access to a report by forensic accountants from PricewaterhouseCoopers who have examined Patisserie Valerie’s books since October.
KPMG is understood to be concerned about the risk of prejudicing an investigation currently being carried out by the Serious Fraud Office.
