THE owner of Patisserie Valerie has suspended its shares following the discovery of potentially fraudulent accounting irregularities.

The popular cafe chain is set to open in Barons Quay next month, but days after announcing a November launch in Northwich, the company finds itself in a potential crisis. 

Patisserie Holdings said it has been notified of "significant, and potentially fraudulent, accounting irregularities and therefore a potential material mis-statement of the company's accounts".

As a result, this has significantly affected the company's cash position and may lead to a "material change" in its overall financial position.

Patisserie has therefore asked that its shares be suspended from trading on the London Stock Exchange's junior AIM market while it carries out a full investigation into its true financial position.

The company's finance chief Chris Marsh has been suspended from his role.

Chairman Luke Johnson said: "We are all deeply concerned about this news and the potential impact on the business. We are determined to understand the full details of what has happened and will communicate these to investors and stakeholders as soon as possible."

Mr Johnson is Patisserie Holdings' largest shareholder with a 37 per cent stake.

In May, the firm reported a 14.2 per cent rise in pre-tax profit for the six months ended March 31, up from £9.7 million to £11.1 million.

Revenue climbed 9.1 per cent to £60.5 million, it said at the time.

Sky News reports the 'black hole' in the company's accounts may amount to more than £20 million. 

Patisserie Valerie trades from more than 200 stores and also has a partnership with Sainsbury's, with branded counters present in the supermarket.