Patisserie Valerie to cease trading without 'immediate injection of capital'

Guardian Web |

The stricken cakes and cafe chain Patisserie Valerie said it will have to cease trading without “an immediate injection of capital”.

The owner of Patisserie Valerie was plunged into financial crisis on Wednesday after it revealed a multimillion-pound accounting black hole and that its main trading subsidiary was facing a winding-up order.

On Thursday, the board said there was a “material shortfall between the reported financial status and the current financial status of the business” and it would need new funds to continue trading.

It said the company was “assessing all options available to the business to keep it trading and will update the market in due course”.

The 92-year-old cake chain, which has more than 200 stores, halted trading in its shares as it revealed “potentially fraudulent” financial irregularities that, according to Sky News, could amount to more than £20m. It has some 2,500 employees.

Just hours after the suspension, Patisserie Holdings said its board had been unaware that HM Revenue and Customs had filed a winding-up petition at the high court against the company’s main trading subsidiary, Stonebeach, over an unpaid £1.14m tax bill. The petition was filed on 14 September.

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