Cake Box CFO walks away after accounting controversy

The finance main of Cake Box is to resign just after accounting faults prompted a plunge in the firm’s share value.

Pardip Dass, who co-started the Enfield-centered enterprise, will action down at the end of March “to pursue other interests,” the company explained.

David Forth, who has held senior positions at AB Meals and Eddie Stobart, will stage in as interim CFO.

Dass said: “I am particularly happy of what we have reached at Cake Box, from 1st starting to franchise the business enterprise model, to listing the small business on Purpose.

“After a ten years with the organization, now is the appropriate time to shift on following an orderly handover to David. I continue to be passionate about Cake Box and a supportive shareholder, and desire my dedicated colleagues all the incredibly best for the long term.”

Shares in the egg-free cake maker have dropped 35% given that mid-January, when a finance blogger discovered “an faulty £2 million entry within the hard cash circulation statement.”

Auditors RSM resigned in September 2021.

In its update these days, the organization also declared a new COO and marketing director as portion of a boardroom shake-up. Cake Box claimed gross sales were being on keep track of to meet anticipations.

Started in 2008, Cake Box has due to the fact developed to around 180 branches throughout the British isles. It described revenue of £22 million in 2021.

CEO and co-founder Sukh Chamdal and his spouse Santosh Chamdal offered a 7.5% slice in the organization, well worth £11 million, just weeks right before the share price tanked in January.

The business established apart £460,000 very last calendar year to protect fees and fines right after a malware assault resulted in the reduction of customers’ individual information. Cake Box did not notify buyers and shareholders about the knowledge breach right until a year immediately after it took put.

It appointed inner auditors BDO to “ensure that more robust ongoing controls are operated across the group specially in gentle of the facts breach.“