{"id":3189,"date":"2018-10-12T15:49:58","date_gmt":"2018-10-12T15:49:58","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/rescue-plan-for-patisserie-valerie\/"},"modified":"2018-10-12T15:49:58","modified_gmt":"2018-10-12T15:49:58","slug":"rescue-plan-for-patisserie-valerie","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/rescue-plan-for-patisserie-valerie\/","title":{"rendered":"Rescue plan for Patisserie Valerie"},"content":{"rendered":"\n<div property=\"articleBody\">\n<figure class=\"media-landscape no-caption full-width lead\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                <img loading=\"lazy\" decoding=\"async\" class=\"js-image-replace\" alt=\"cakes in Patisserie Valerie window\" src=\"https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/2461\/production\/_103831390_cake2gettyimages-109889463.jpg\" width=\"976\" height=\"549\"\/><span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p class=\"story-body__introduction\">Patisserie Valerie has been saved from collapse after entrepreneur Luke Johnson, who owns 37% of the company, offered up to \u00a320m in loans to the struggling chain.<\/p>\n<p>Mr Johnson has offered \u00a310m in a three-year loan to owners Patisserie Holdings plc, which the company said would provide &#8220;immediate liquidity&#8221;.<\/p>\n<p>He has also offered a further bridging loan facility of up to \u00a310m.<\/p>\n<p>The firm is also looking to raise another \u00a315m by issuing new shares. <\/p>\n<p>The directors said the company required an immediate cash injection of no less than \u00a320m, without which it could not continue trading in its present form.<\/p>\n<p>The cafe chain is fighting for survival after revealing on Wednesday it had uncovered &#8220;significant, and potentially fraudulent, accounting irregularities&#8221;.<\/p>\n<p>On Friday, the company said its finance director Chris Marsh had been arrested and released on bail.<\/p>\n<p>The Serious Fraud Office said it had &#8220;opened a criminal investigation into an individual&#8221;.<\/p>\n<p>&#8220;We can give no further information or comment at this time,&#8221; <a href=\"https:\/\/www.sfo.gov.uk\/2018\/10\/12\/patisserie-holdings-plc\/\" class=\"story-body__link-external\">the SFO said<\/a>, without naming the individual.<\/p>\n<p>Patisserie Valerie&#8217;s shares were trading at 429p before they were suspended on Wednesday. <\/p>\n<hr class=\"story-body__line\"\/>\n<h2 class=\"story-body__crosshead\">Patisserie Holdings<\/h2>\n<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\">It has five brands: Patisserie Valerie, Druckers &#8211; Vienna Patisserie, Philpotts, Baker &amp; Spice and Flour Power City.<\/li>\n<li class=\"story-body__list-item\">Now, there are 206 stores across the chain and more than 2,500 staff as of May 2018.<\/li>\n<li class=\"story-body__list-item\">It was floated on the AIM stock market, for smaller companies, in 2014.<\/li>\n<li class=\"story-body__list-item\">The first Patisserie Valerie caf\u00e9 was opened on Frith Street in London&#8217;s Soho district in 1926.<\/li>\n<li class=\"story-body__list-item\">In 1987 the Scalzo family bought the Old Compton Street store and ran the business.<\/li>\n<li class=\"story-body__list-item\">In 2006, Luke Johnson&#8217;s Risk Capital Partners bought a majority stake when it had eight stores.<\/li>\n<\/ul>\n<hr class=\"story-body__line\"\/>\n<p>Mr Johnson, who invested in Patisserie Valerie in 2006, is a serial entrepreneur who is best known for taking control of Pizza Express in 1993 before selling out in 1999.<\/p>\n<p>In 2001 he co-founded Risk Capital Partners, which owns stakes in companies including Majestic Bingo and swimming goods firm Zoggs.<\/p>\n<p><a href=\"http:\/\/otp.investis.com\/clients\/uk\/patisserie_holdings\/rns\/regulatory-story.aspx?cid=844&amp;newsid=1199404\" class=\"story-body__link-external\">Patisserie Holding&#8217;s directors said in a statement<\/a> that once the share issue and loans had taken effect, the company would be able to continue trading in its present form &#8220;for the foreseeable future&#8221;.<\/p>\n<p>&#8220;Following the initial investigation, the directors can confirm that the group has net debt of approximately \u00a39.8m,&#8221; the statement said.<\/p>\n<p>However, it added that shareholders should be aware that investigations into the company&#8217;s &#8220;financial irregularities&#8221; were at &#8220;a very preliminary stage&#8221;.<\/p>\n<p>The statement also said that the irregularities were also likely to have affected the historical financial statements of the company.<\/p>\n<p><a href=\"http:\/\/otp.investis.com\/clients\/uk\/patisserie_holdings\/rns\/regulatory-story.aspx?cid=844&amp;newsid=1013216\" class=\"story-body__link-external\">In its most recent results statement in May<\/a>, the firm said it had cash reserves of \u00a328.8m.<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45839392\">Source<\/a> by <a href=\"\">[author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image copyright Getty Images Patisserie Valerie has been saved from collapse after entrepreneur Luke Johnson, who owns 37% of the company, offered up to \u00a320m in loans to the struggling chain. Mr Johnson has offered \u00a310m in a three-year loan to owners Patisserie Holdings plc, which the company said would provide &#8220;immediate liquidity&#8221;. He has &hellip; <\/p>\n","protected":false},"author":0,"featured_media":3176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=3189"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3189\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/3176"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=3189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=3189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=3189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}