Investigations going back 17 years were immediately initiated

Foyles

"Solicitors Mishcon de Reya are acting for Foyles and have taken action in the High Court against a number of defendants."

A spokesman for Foyles confirmed that the purpose of the legal action was to recover missing funds, the value of which is reported to run into millions of pounds.

W&G Foyle was founded in 1904 on Charing Cross Road by Gilbert and William Foyle and is famous for its literary luncheons.

For many years it was run under the watchful eye of William's daughter, Christina, who died last June, aged 88.

Resisted change

Ms Foyle rigidly resisted change, leaving the bookshop still without computers when she died.

The store is now in the hands of her nephews Christopher and Anthony, who have launched a programme of modernisation.

Anthony Foyle said it was business as usual at the bookshop despite the ongoing legal action.

"This has had no effect on our business at all - this is all in the past," he said.

He said he could not confirm the identities of the suspended managers, or estimate of the amounts thought to be missing.