Frasers Group encounters a significant challenge with their recent acquisition, I Saw It First, due to a £7m shortfall in wage data.
- Cooper Parry auditors could not verify nearly £7m in wages for I Saw It First.
- The payroll data was lost during Frasers Group’s acquisition process in 2022.
- Other Frasers Group-owned businesses are also experiencing audit issues.
- Frasers Group has not provided further comments on these discrepancies.
Frasers Group, renowned for its wide range of business acquisitions, is currently facing a significant challenge involving their latest acquisition, the online fashion retailer I Saw It First. The group has acknowledged a shortfall of nearly £7 million in wages and salary payments data due to an accounting system error. This issue has emerged following the acquisition of I Saw It First in July 2022 for the nominal sum of £1.
Cooper Parry auditors have reported difficulties in verifying approximately £7 million in salary and wage payments for I Saw It First, attributing the issue to a ‘limited set of payroll data’ that appears to have been lost post-acquisition. The data in question was not integrated into Frasers Group’s system after the acquisition, and the original data storage system for I Saw It First is no longer in existence.
In addition to this, Frasers Group-owned retailer, Choice, is also encountering audit challenges. Auditors from Hart Shaw have reported missing crucial information necessary for completing their audit work, exacerbating concerns within the group about systematic oversight in integrating acquisitions.
A spokesperson for Frasers Group has stated: ‘A limited set of I Saw It First payroll data can no longer be accessed because it was not migrated onto Frasers Group’s systems during the post-acquisition integration process.’ This highlights potential gaps in Frasers Group’s integration and data management practices during acquisitions.
Despite these financial data challenges, Frasers Group is pressing ahead with its international expansion plans, including the opening of new stores in the Netherlands, Luxembourg, and Belgium by the end of the year.
The unverified payroll data suggests a need for Frasers Group to reassess their integration procedures to prevent future discrepancies.
