The owner of stricken cafe chain Patisserie Valerie has admitted its accounting scandal is worse than previously thought.
In a strongly worded statement, Patisserie Holdings spoke of the devastating effects of a fraud that involved 'significant manipulation' of its books, including thousands of false entries.
Initial findings from a probe into the scandal reveal cash flow and profitability have been overstated.
The chain is now pleading with lenders for a further extension to loan arrangements.
Patisserie Valerie, headed by entrepreneur Luke Johnson, has overhauled its management after a £40million black hole was discovered on its books and former finance boss Chris Marsh was arrested on suspicion of fraud.