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Patisserie Valerie goes into administration

Posted on - 22nd January, 2019 - 5:57pm | Author - | Posted in - Business, Food & Drink, Preston City Centre
PIC: Tony Worrall

The cafe chain Patisserie Valerie, which has a branch in Friargate, has fallen into administration.

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The firm, which has around 200 branches nationwide, has been in trouble since concerns over fraud and false accounting first emerged in October.

Administrators KPMG have been called in to manage the chain and emergency talks have taken place with bankers.

It is not yet known whether the Preston branch will close.

Read more: Patisserie Valerie opens with queues out of the door

The BBC reports: The company’s biggest shareholder and chairman, Luke Johnson, had been in talks to extend a cash lifeline from HSBC and Barclays.

The company’s statement said that Mr Johnson had personally extended an unsecured, interest-free loan to help ensure that the January wages are paid to all staff working in the business.

“This loan will also assist the administrators in trading as many profitable stores as possible while a sale process is undertaken,” the statement added.

An investigation is underway by the Financial Reporting Council.

Patisserie Valerie’s finance director Chris Marsh was suspended when financial irregularities emerged and has since been arrested.

Former auditors Grant Thornton are also under investigation.

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