Paul May, CEO of Patisserie Valerie, resigns with immediate effect

The CEO of Patisserie Valerie has resigned from his position with immediate effect.

Paul May leaves the business just a month after the cake chain found a black hole in its accounts and was forced to raise emergency funds to stay afloat.

The future of the company was first thrown into doubt after it uncovered fraudulent activity around its financial accounts and was served a wind-up order by the taxman over £1.14 million owed to HM Revenue and Customs.

Mr May and the company’s chairman Luke Johnson faced criticism at a meeting of Patisserie shareholders in early November.

Investors took aim at £15 million emergency fundraising, which they said would dilute their stakes in the company.

The group's finance director Chris Marsh was arrested on suspicion of fraud last month, but was later released.

He has since left the group.

Stephen Francis, recent CEO of pork producer of Tulip has been appointed the company’s new head.

He led the company’s rapid return from significant losses.

His experience also includes transforming Danwood Group as CEO, as well as working on the turnarounds of Vion Food Group and Vita Group.

Chairman Luke Johnson, who loaned the company £20 million to save it from collapse in October, said Mr Francis would assist with a "revival" of the business.

"I am delighted to welcome Steve Francis as new CEO at Patisserie Holdings PLC," he said.

"He has a strong track record of restoring value in turnaround situations, especially in the food industry, and the board looks forward to working with him in the revival of the business."

Additional reporting by PA.