The owner of the café chain Patisserie Valerie has discovered large accounting holes and has discovered that the HMRC has filed a winding-up petition against one of its subsidiaries.
The company has announced that the HMRC are seeking £1.14 million in taxes.
Shares in the company have been suspended.
Luke Johnson, who owns 37% of the company, has 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."
The company announced the fraudulent activity to the board of directors on Tuesday. It was announced to the stock market in Wednesday just before their shares were set to start trading.
