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Patisserie Valerie - the latest

13 October 2018

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Update (15.10.18)

The latest news, for Patisserie Valerie, is that rumours suggest they are considering suing Grant Thornton, for failing to spot the £40m hole in their accounts.

Luke Johnson, revealed that the board found a £9.7m 'secret overdraft', with Barclays and HSBC - that he, nor the auditors knew about.

Johnson says the past week has been ''the most harrowing''. He felt morally obliged to rescue the business, as shown by his £20m cash injection. 

''2800 jobs were at stake, there was 12 years of effort that I and colleagues had put into the business, and the board were determined not to allow the business to go into administration''. 

Update (13.10.18)

Only earlier this week, Patisserie Valerie was brought to our attention, being at risk of collapse. Now, news suggests they have been saved.

Luke Johnson, who owns 37% of the company, has provided £20m of loans to the struggling chain.

The deal agreed lending of £10m for three years, to owners Patisserie Holdings plc. It is said that this will provide ''immediate liquidity''.  

Additional to this, a further bridging loan facility of up to £10m was provided.  

New shares have also been issued, allowed a further £15m to be raised for the firm, 

The firm said it had also raised another £15m by issuing new shares.

Company directors said they required a cash injection, immediately, of minimum £20m, for the firm to continue trading in its present form.

Following the ''significant, and potentially fraudulent, accounting irregularities'', reported,  finance director Chris Marsh had been arrested and released on bail. The Serious Fraud Office said it had "opened a criminal investigation into an individual'', with no further comment or information being given. 


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