Patisserie Valerie executives Luke Johnson and Paul May are facing fresh questions after failing to disclose they were also landlords to the stricken bakery chain.
The duo, the chairman and former chief executive respectively, own Patisserie Valerie’s Tunbridge Wells site, a fact that was not disclosed as a “related party” in the accounts of operating company Stonebeach.
A spokesman for Mr Johnson said the company’s board had been made aware of the relationship, but decided it was below the threshold – called a “materiality level” – at which details needed to be disclosed.
Materiality. Sure, all sorts of thing happen, which are important and which are not? That depends upon the relative size of the happening to the whole.
Landlord of one shop out of 160? Sure, not material. Own 50% of the freeholds and renting them at top notch rates to the company? Material. In between, well, look up Sorites.
Are there people fiddling their tax bills by paying in cash? Sure are – do we abolish cash to deal with it? Nope. Suspend civil liberties? Nope.
Is it material, germane to the subject under discussion?