Almost 100 cafes will be rescued, saving about 2,000 jobs, in Causeway Capital deal

The Patisserie Valerie bakery chain has been saved from closure by a management buyout backed by an Irish private equity firm.

Almost 100 cafes will be rescued in the deal, backed by Causeway Capital, saving about 2,000 jobs.

About 30 more sites trading as Philpotts and Baker & Spice have also been rescued by a different buyer, the Guardian understands.

Dublin-based Causeway specialises in investing in small and medium-sized companies and already owns BB Bakers + Baristas, which has 60 sites in the UK and Ireland.

The rescue comes only days after Mike Ashley’s Sports Direct walked awayfrom talks to buy the stricken cake chain.

Patisserie Valerie went into administration in January after a £40m black hole was uncovered in its finances.

Administrators at KPMG, which is running the company, have already closed 71 of Patisserie Valerie’s near 200 stores and concessions, as it sought a buyer for the company. Dozens of bids were received, either for the whole company or some of its stores. Around 900 jobs have been lost.

Patisserie Valerie has blamed its financial plight on “very significant manipulation” of its balance sheet and “extensive” misstatement of its accounts. It suspended its finance chief Chris Marsh, who subsequently resigned after being arrested and bailed by police.

Original Source

 

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