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Patisserie Valerie owner warns on future as crisis deepens

By John-Paul Ford Rojas, business reporter

The crisis-hit owner of Patisserie Valerie has warned that without an immediate injection of capital there is "no scope for the business to continue trading in its current form".

Patisserie Holdings issued the bleak update a day after it revealed that it had learned of "potentially fraudulent accounting irregularities" resulting in the misstatement of its financial position, and suspended trading in its shares.

The company said on Thursday that investigations over the last 24 hours had prompted it to conclude that there was "a material shortfall between the reported financial status of the business and the current financial status of the business".

Directors now believed that an "immediate injection of capital" was needed and were "assessing all options available to the business to keep it trading".

It was not immediately clear whether stores would be able to remain open for the time being or what the future would hold for the company's 2,500 staff.

The options open to the company are likely to include going into administration. A spokesman was unable to comment on this or as to whether any other solutions to the crisis looked likely.

Sky News had first disclosed on Tuesday evening that shares were to be suspended the following day as Patisserie Holdings investigated a black hole in its accounts that could exceed £20m.

The company confirmed this on Wednesday and revealed that finance director Chris Marsh had been suspended.

It further disclosed that it had just learned of a winding-up petition that had been filed against its main subsidiary relating to more than £1m owed to the UK tax office.

Patisserie Holdings – which had a market value of nearly £450m before shares were suspended this week – operates from more than 200 stores.

The ‎company's current situation creates a huge headache for Luke Johnson, one of Britain's best-known and most successful entrepreneurs, who is Patisserie Holdings' executive chairman and largest shareholder.

He bought a 70% stake in the business in 2006 and his current 37% holding was worth approximately £200m ahead of the suspension in trading.

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Mr Johnson is a serial entrepreneur who has enjoyed huge success with restaurant chains including Pizza Express – and this year, he has tried to engineer takeovers of others such as Gaucho, which collapsed into administration during the summer.

The first Patisserie Valerie was opened in London's Soho district in 1926 by the Belgian-born Madame Valerie, according to the company's website, expanding later under new owners.

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Firms to launch Brexit contingency plans before Christmas

The majority of British businesses are preparing to launch contingency plans before Christmas as hopes of a Brexit deal fade.

A survey of 236 firms for the Confederation of British Industry (CBI) found that many will make "damaging" moves which will include cutting jobs and relocating work overseas.

The survey focused on companies employing fewer than 500 people and it found that 82% of firms will start to implement their contingency plans by December if the Brexit process does not get any clearer.

The news comes as fears grow that the UK could leave the European Union in March without a deal, resulting in tariffs on exports, border checks and travel restrictions.

Carolyn Fairbairn
Image: Carolyn Fairbairn is director general of the CBI

CBI director general Carolyn Fairbairn said the situation was "urgent", adding: "The speed of negotiations is being outpaced by the reality firms are facing on the ground.

"Unless a withdrawal agreement is locked down by December, firms will press the button on their contingency plans.

"Jobs will be lost and supply chains moved.

"The knock-on effect for the UK economy would be significant: living standards would be affected and less money would be available for vital public services including schools, hospitals and housing."

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She said the uncertainty was "draining investment" from the UK, adding: "From a multinational plastics manufacturer which has cancelled a £7m investment, to a fashion house shelving £50m plans for a new UK factory, these are grave losses to our economy.

"Many firms won't publicise these decisions, yet their impact will show in lower GDP years down the line."

According to the CBI, 80% of companies said Brexit had already had a negative impact on their investment decisions, more than double the 36% that said the same a year ago.

Two-thirds said Brexit had affected how attractive the UK was to investors. One in four said it had no impact.

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People shopping at the Columbia Road Flower Market, a Sunday street market in the London Borough of Tower Hamlets
Image: A number of industries could be affected if there is no Brexit deal

Last week's summit between prime minister Theresa May and Europe's leaders made little progress towards a deal and a second summit in November has been called off.

The next meeting is scheduled for December but, even if a deal is reached, there is no guarantee that parliament will approve it.

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A spokesman for the Department for Exiting the European Union said: "We are working hard to deliver a deal that works for businesses and remain confident of a positive outcome.

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"In the unlikely event we leave the EU without a deal, we have issued over 100 technical notices to help businesses make informed plans and preparations.

"We have engaged extensively with businesses and industry bodies from all sectors of the economy throughout the exit process and will continue to do so."

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Police found the remains of 63 more infants and fetuses at a second funeral home in Detroit

  • Detroit police found 63 remains of infants and fetuses at a funeral home — just days after discovering the remains of 11 babies at a separate funeral home.
  • Police Chief James Craig told reporters he couldn't say with certainty that the incident was isolated to just two funeral homes. "This is much larger than we might know," he said.
  • Investigators originally found the remains of 11 stillborn babies concealed in a funeral home's "false ceiling," after they received an anonymous letter tipping them off.

Detroit police on Friday announced they had found dozens more remains at a funeral home just days after uncovering the corpses of 11 infants concealed in the ceiling of a separate, defunct funeral home.

Authorities said they found remains of 63 infants and fetuses at the Perry Funeral Home, 36 of which were found in boxes and 27 in freezers.

"This is deeply disturbing," Police Chief James Craig told reporters at a press conference. "I am committed to get to the truth. I'm committed to following the evidence."

Craig said the police department's phone was "ringing off the hook" since the original discovery of 11 remains last week, adding that it's possible there are more remains at different establishments yet to be found.

"I would like to look at you and tell you I hope not," Craig told one reported. "I hope that it is isolated to these two. I can't say that with certainty. So this is much larger than we might know."

The Michigan Department of Licensing and Regulatory Affairs said Friday it suspended the mortuary science licenses of Perry Funeral Home and its director, The Detroit News reported.

The original discovery of 11 corpses came after authorities received an anonymous letter tipping them off about the Cantrell Funeral Home, which had been closed for months due to "deplorable conditions," according to The Detroit News.

Investigators then reportedly found the remains of 11 stillborn babies concealed in a "false ceiling" between the first and second floors of the building. Nine of those infants' bodies were in cardboard boxes, and two were inside a trash bag, which in turn was inside a infant-sized casket.

Craig said Friday that the investigation into the second funeral home came after authorities received a second tip from a parent who had heard a media report of the first discovery of remains.

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I’ve traveled to more than 30 countries, and here are the dumbest mistakes I made on the road that I’ll never make again

  • In March, I left New York to travel around the world as Business Insider's international correspondent. In total, in my life, I've traveled to 30-plus countries.
  • While traveling I've made tons of dumb mistakes that I'd like to avoid in the future. Everything from getting pickpocketed in the Mexico City metro to getting tricked by a fake taxi.
  • Learn from my mistakes and save yourself some aggravation.

The idea that travel is an adventure is one of the oldest clichès in the book. But, it's a clichè because it's true. And, on adventures, things go wrong. Often.

I've made so many mistakes while on the road that it would be impossible for me to recount them all. I've worn the wrong footwear on hikes and ended up with blisters as big as my heel. I've been pickpocketed not once, but twice. I've taken a metro in the wrong direction a dozen times. The mistakes never end.

But that's also what I love about travel: the constant sense of exploration, of trial and error, of sketching out new terrain on your mental map.

Below, I've collected as many of the mistakes as I can remember that I've made while traveling. There are a lot. Perhaps you'll learn from my mistakes and save yourself some aggravation.

SEE ALSO: I traveled the world for 6 months, and here's the single best piece of advice I can give you for any trip you take

DON'T MISS: I've been traveling the world for 6 months, and I've found real life doesn't always live up to the hype. These are the most disappointing places I've been.

1. I forgot to print out my boarding pass before getting on a budget airline. I had to pay $34 to print out my boarding pass at airport check-in.

I've been traveling the world for 6 months, and I still made an expensive budget airline mistake that should serve as a warning to anyone»

2. In Bali, I made the mistake of wearing flip-flops while driving a scooter bike. When my hand slipped on the throttle with my foot on the ground, it dragged and I ended up with a nasty cut.

3. On my last night in Tokyo, I decided it was a good idea to spend the night out drinking at an izakaya and singing karaoke. I woke up in a stupor, barely made my 8 a.m. flight, and was nauseous for the entire 13-hour flight to New York.

A little-known travel app that is Airbnb-meets-Tinder helped me have the wildest night in Tokyo partying until sunrise»

See the rest of the story at Business Insider

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The Saudi government reportedly targeted and punished several dissidents after McKinsey identified them in a report

  • The Saudi government targeted and punished several dissidents after the American consultancy firm McKinsey & Company identified them in a report as critics, The New York Times reported.
  • McKinsey reportedly created a nine-page report gauging public response to Saudi austerity measures announced in 2015, and found that three dissidents had a major influence over negative coverage on Twitter.
  • One of the dissidents was arrested, another was hacked and had two brothers arrested, and a third, anonymous user's account was shut down, The Times reported.

Several dissidents were targeted by the Saudi government after a report from the American consultancy firm McKinsey & Company identified them as having a heavy influence over social-media criticisms of Saudi austerity measures, according to The New York Times.

McKinsey reportedly created a nine-page report measuring the public's response to austerity measures announced in 2015, and found that there was twice as much coverage of the measures on Twitter than on other news platforms, and that the coverage was overwhelmingly negative.

The McKinsey report, obtained by The Times, found that three people were particularly influential on Twitter, including Khalid al-Alkami, a writer; Omar Abdulaziz, a Saudi critic who lives in Canada; and an anonymous user identified as Ahmad.

Following McKinsey's report, Alkami was reportedly arrested; two of Abdulaziz's brothers were arrested, and the government hacked Abdulaziz's phone; and the Ahmad account was shuttered.

A McKinsey spokesman said in a statement to Business Insider that the report was not created for the Saudi government, used publicly available information, and was intended primarily for an "internal" audience.

"We were never commissioned by any authority in Saudi Arabia to prepare a report of any kind or in any form to identify critics. In our work with governments, McKinsey has not and never would engage in any work that seeks to target individuals based on their views," the spokesman said.

He continued: "We are horrified by the possibility, however remote, that it could have been misused in any way. At this point, we have seen no evidence to suggest that it was misused, but we are urgently investigating how and with whom the document was shared."

The news comes amid international uproar over the death of Washington Post journalist Jamal Khashoggi, whom the Saudi government acknowledged Friday was killed in a consulate in Istanbul, Turkey. Khashoggi had frequently criticized the Saudi government and Crown Prince Mohammed bin Salman in his columns.

Khashoggi's death, which the Saudis have said occurred after a physical altercation, has highlighted the Saudi government's attempts to quash dissent and silence critics, and shone a spotlight on the companies and governments who have aided the regime.

SEE ALSO: Here's everything we know about the troubling disappearance and death of Saudi journalist Jamal Khashoggi

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The CEO of Silicon Valley DNA testing startup 23andMe shares the health product she hopes to sell next

  • Anne Wojcicki, the CEO and founder of Silicon Valley's most popular genetics testing startup, 23andMe, said this week that she hopes the company expands its current health offering lineup.
  • 23andMe, which made headlines recently on the heels of a new $300-million partnership with drug giant GlaxoSmithKline, currently offers health screenings for some of the genes involved in breast cancer, Alzheimer's, and Parkinson's.
  • On Tuesday, Wojcicki said she hopes to add a new health offering that looks at how you process medications including those for depression.
  • Albertsons pharmacies and gene testing startup Color Genomics currently offer that kind of test for $250-$750, but many scientists say it's not worth the money.

Anne Wojcicki, the CEO and founder of popular Silicon Valley gene testing company 23andMe, doesn't feel like the company is currently offering what she called a "complete product."

That's because the current gene testing kit — which includes health screenings for some of the genes involved in Alzheimer's, Parkinson's, and breast cancer — does not include a test that looks at how you process medications including those for depression.

Those DNA tests, which assess genes involved in the break down of antidepressants in the body, are currently being offered by psychiatrists and Albertsons pharmacists in three major cities at a hefty price tag of $750. Just last month, another Silicon Valley genetics testing startup called Color Genomics began offering the test as part of its $250 kits.

And on Tuesday at a conference organized by Rock Health, one of Silicon Valley's premier health-tech funding groups, Wojcicki said she hoped her company could include that kind of test in its product lineup soon.

But many scientists feel the tests don't offer a clear benefit to people and in some cases are not worth the money. Among other issues, the tests may give conflicting results to the same patient for the same medication and don't tell providers which specific medication is best, according to experts.

'When we can bring pharmacogenomics back, then we have a complete product back'

23andMe kitIn the early days of 23andMe, the company included a test for depression medications in its lineup of health offerings, Wojcicki said. But in 2013, the Food and Drug Administration forced the company to stop selling those products and get federal approval on the grounds that the tests could be misinterpreted as health advice. The company was allowed to continue selling the genealogy component of its kit, which looks at ancestry.

Last year, the FDA gave the company the green light to again sell some of its health screenings. On the heels of that decision, 23andMe rolled out a limited selection of some of its original products. The most recent addition, unveiled in March, is a test for some of the genes involved in the risk of developing breast cancer, also known as BRCA genes.

Now, the company is only missing one of those original health products, Wojcicki said: a test for depression medications, also called pharmacogenomics.

"The only one we don’t have back yet is pharmacogenomics. We used to have that and we’d like to have that one come back," Wojcicki said on Tuesday at a panel discussion at the Rock Health Summit in San Francisco.

“When we can bring pharmacogenomics back, then we have a complete product back," she said.

It remains to be seen how the company would roll out such a test. Because 23andMe sells its tests directly to people (they can be purchased online and at a selection of drug stores), it would need to get FDA approval before selling an additional health product. The test could be incorporated into the existing health lineup, which currently includes tests for Alzheimer's, Parkinson's, and breast cancer for $199, or it could be sold as a stand-alone test.

Color Genomics chose to incorporate its new pharmacogenomics product into its existing $250 test. Unlike 23andMe, which sells its services directly to consumers, Color requires people to order their tests through a medical provider. In addition, the company mandates talking with a professional genetics counselor and a clinical pharmacist to avoid potentially dangerous misinterpretations of the results.

Genomind and Assurex, the two companies who offer a standalone pharmacogenomics product, sell the test through psychiatrists and some pharmacists for $750.

Wojcicki did not provide further details on how much the test — should the company ultimately choose to offer it — would cost or when it would be available. A company representative also declined to offer Business Insider more information about the test. But Wojcicki said she saw the pharmacogenomics service as part of the company's overall mission to help empower customers with more data about themselves and prevent negative health outcomes when possible.

"I think one thing genetics can do is help prevent a lot of early deaths," Wojcicki said.

SEE ALSO: DNA tests that cost as much as $750 claim to tell you which antidepressant is best for you, but scientists say they're not worth the money

DON'T MISS: DNA-testing company 23andMe has signed a $300 million deal with a drug giant. Here's how to delete your data if that freaks you out.

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