controller, Mr. Earl Fithian.

A writ was entered in the Supreme Court yesterday by the bakery's law firm, Conyers, Dill & Pearman.

Mr. Fithian was arested by Police on December 1 in connection with an investigation into the Bakery's finances.

He is currently on Police bail and is believed to be off the Island.

The company has suspended, for an indefinite period, trading of its shares on the Bermuda Stock Exchange, as auditors conduct an exhaustive probe into the company's share register.

Bakery chairman Mr. James Pearman hinted to The Royal Gazette earlier this week that Mr. Fithian, who is also a shareholder of the company, might face legal action.

He said: "If we can determine that he did indeed take money from us or caused us damage, then we would take every step possible to get hold of such assets that he had.'' Mr. Fithian was earlier this week off the Island, although he was required to return to the Island this month to face conditions of his Police bail.