Troubled cake chain Patisserie Valerie has fallen into administration after it was unable to renew its bank facilities, with 70 outlets to close from the outset.
Its owner, Patisserie Valerie, said the business did not have sufficient funding to meet its liabilities. Administrators from KPMG have been appointed.
KPMG will close 70 stores and concessions, but will continue to trade 121 stores while they assess options for the business.
The administrators have retained the management team under chief executive Steve Francis to assist with the process, which could include a possible sale.
Blair Nimmo, head of restructuring at KPMG and joint administrator, said: “Our intention is to continue trading across the profitable stores, as collectively, the brands have a strong presence on the high street and have proven very popular with consumers. At the same time, we will be seeking a buyer for the business and are hopeful of a good level of interest.
“Unfortunately, however, we have had to take the difficult decision to close 70 stores resulting in a significant number of redundancies. We will be working with those affected employees, providing all support and assistance they need.”
The high street chain has been in crisis mode since October, when it said it had uncovered “potentially fraudulent” accounting irregularities”.
Chairman Luke Johnson has personally extended an unsecured, interest-free loan of £3m to 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,” said the company.
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