Jobs at risk at Patisserie Valerie branches as company collapses into administration
Cake chain Patisserie Valerie, which has four Sussex branches, has collapsed into administration.
The firm has branches in Chichester, Hove, Brighton and Eastbourne, whilst it was earmarked for a store in Worthing, but has not made any comment about individual stores at this time.
It did explain that discussions with its lenders HSBC and Barclays to extend a standstill agreement had come to nothing, leaving it with no option but to appoint KPMG as administrator.
Its parent company Patisserie Holdings has been grappling with the fallout of an accounting fraud.
It said: "Patisserie Holdings plc announces today that, as a direct result of the significant fraud referred to in previous announcements, it 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."
Chairman Luke Johnson has extended an unsecured, interest-free loan to help ensure that the January wages are paid to all staff working in the ongoing business, the company said.
The loan will also assist the administrators in trading as many profitable stores as possible while a sale process is undertaken.