Patisserie Holdings goes into administration as bank talks fail
Chairman Luke Johnson provided another loan to help provide employees their wages for January.
The parent company of embattled cake and cafe chain Patisserie Valerie has placed itself in administration, after an eventful three months since discovering significant accounting irregularities.
“[I]t has been unable to renew its bank facilities, and therefore regrettably the business does not have sufficient funding to meet its liabilities as they fall due,” Patisserie Holdings announced in an update.
Partners at KPMG were appointed as administrators to the company and its various subsidiaries.
Chairman Luke Johnson, who earlier provided £20 million in loans to the chain, also extended an unsecured, interest-free loan of £3.0 million ensure that January wages are paid to all staff.
“This Loan will also assist the administrators in trading as many profitable stores as possible while a sale process is undertaken,” the update stated.
Patisserie Holdings made numerous headlines last October after discovering “significant, and potentially fraudulent” accounting irregularities up to almost £10 million. Then-chief financial officer Chris Marsh was arrested by the police and subsequently released on bail after being suspended from the role, with the chain going through further management changes as a result of the crisis.
