PwC was asked before Christmas by the companies’ bankers to investigate the companies’ financial affairs. The investigations, led by Aidan Birkett of the firm’s Business Recovery Services practice, found the appearance of ‘complex, extensive and long running fraud inside the company of a very material nature’.
The firm’s appointment as administrative receivers to Versailles, which suspended its finance director yesterday, was secured at a meeting with bankers yesterday.In a statement PwC said: ‘As the extent of the apparent fraud at Versailles was gradually uncovered, it became apparent that the size of the problem was such that it would be impossible to restructure the Versailles Group’s affairs in order to ensure its survival.
‘[Lomas and Kahn’s] priority is now to secure control of the companies’ assets and then to begin to realise the cash that is tied up in the group’s complex transactions.’
PwC’s appointment is latest in a long line of accountants to advise the company in troubled weeks. Baker Tilly, KPMG and Levy Gee have also advised on the Versailles case since accounting irreglarities were uncovered late last year.
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.
Kevin Reed discusses whether new accountancy group Cogital can rival the Big Four...and its likely direction of travel