Patisserie Valerie appoints ex-Starbucks chief

Patisserie Valerie, the coffee and cake shop chain has appointed an ex Starbucks executive to a key commercial role as its tries to forget harsh memories from the accounting scandal that nearly brought the company to collapse.

Rhys Iley, former retail and operations vice-president at Starbucks in Europe, will become group commercial director of Patisserie Holdings, the chain’s parent company, completing a total change of top management under chief executive Steve Francis.

Mr Francis  a turnaround specialist who was appointed last month replacing Paul May who resigned in the wake of the scandal said: “ I really needed someone with high street experience, a known heavy-weight”.

An individual is under investigation by the Serious Fraud Office and the Financial Reporting Council is set to examine the auditing of the group’s financial statements by Grant Thornton after Patisserie Valerie ended up having debts of almost £10m despite reporting a net cash position of £28m. Patisserie Valerie’s future was secured only after executive chairman Luke Johnson extended an emergency loan and arranged a £15m equity issue that was approved at a stormy shareholder meeting.

“ I am focused on the future, This is very unusual high street business, in that there is a hard core of customers. It’s not a business where current trading has fallen away. That’s one of the things I found attractive. It’s a candy store of opportunity.”

Mr Iley joins Nick Perrin, who was appointed interim CFO earlier this month and Perrin’s appointment could become permanent.