Published: Thu, October 11, 2018
Economy | By

Patisserie Valerie will be 'forced to stop trading' without cash injection

Patisserie Valerie will be 'forced to stop trading' without cash injection

The cafe's parent company Patisserie Holdings made the admission in a market announcement today (October 11), after being slapped with a winding up petition over unpaid taxes and unearthing potentially fraudulent accounting irregularities a day earlier.

It further disclosed that it had just learned of a winding-up petition that had been filed against its main subsidiary relating to more than £1m owed to the United Kingdom tax office.

Now Patisserie Valerie, which has more than 200 stores in the United Kingdom, has seen its owner make the shock admissions in a statement to investors today.

The crisis-hit owner of Patisserie Valerie has warned that without an immediate injection of capital there is "no scope for the business to continue trading in its current form".

The company, with professional advisers from accountants PwC, have spent the last 24 hours investigating the financial status of the company.

The company confirmed this on Wednesday and revealed that finance director Chris Marsh had been suspended.

This has significantly affected the company's cash position and may lead to a "material change" in its overall financial position.

"As a effect, the directors and the company's professional advisers are assessing all options available to the business to keep it trading and will update the market in due course".

"We are all deeply concerned about this news and the potential impact on the business".

Sky News reports the "black hole" in the company's accounts may amount to more than £20 million.

"We are determined to understand the full details of what has happened and will communicate these to investors and stakeholders as soon as possible".

Entrepreneur Johnson bought a 70 per cent stake in the business in 2006, and still holds a 37 per cent interest, having enjoyed success with other chains like Pizza Express.

In the six months to 31 March this year the group reported revenue of £60.5m, a 9pc increase year-on-year.

It also has a partnership with Sainsbury's supermarket.

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