Patisserie Valerie has sunk into administration. The chain has been trading in the UK since 1926 and is most famous for its handmade cakes. The chain of café’s has unfortunately come to an end due to ‘significant, and potentially fraudulent accounting irregularities.’ Finance director Chris Marsh was arrested over the financial irregularities
The largest shareholder, Luke Johnson tried to do a deal with the banks, and even put £3m of his own cash in to make sure wages for January were paid, however the rescue plan has failed. Shareholders are now faced with the news that their shares have no value.
70 out of 191 cafés’ will be shut down immediately by the administrators, the remaining (most profitable) 121 cafes’ will continue trading in the hope of finding a buyer.
It is understood that 900 out of 3,000 employees’ will be made redundant due to the closure of the 70 cafés’.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.