Get the latest hospitality news and inspiration straight to your inbox. Subscribe to our newsletter.

Patisserie Valerie close to collapse

Written by:
Written by:
Patisserie Valerie close to collapse

Patisserie Valerie will be forced to cease trading if an immediate injection of capital isn’t made, with 2,500 jobs at risk. 

The chain’s parent company Patisserie Holdings has said that “without an immediate injection of capital, the directors are of the view that that is no scope for the business to continue trading in its current form”.

The statement follows the revelation that Patisserie Holdings had uncovered a £1.14m unpaid tax bill and been issued with a winding up petition.

On Wednesday 10 October it suspended trading in its shares and suspended chief financial officer Chris Marsh. It said at the time that it was undertaking an investigation into “significant, and potentially fraudulent, accounting irregularities” and “a potential material mis-statement of the company’s accounts”.

It has now provided an update having investigated the tax bill and winding-up petition, which only came to light this week.

The update said: “The board has now reached the conclusion that there is a material shortfall between the reported financial status and the current financial status of the business.

“Without an immediate injection of capital, the directors are of the view that that is no scope for the business to continue trading in its current form.”

The group employs some 2,500 people in 206 stores across five brands: Patisserie Valerie, Druckers – Vienna Patisserie, Philpotts, Baker & Spice and Flour Power City.

Update: Patisserie Valerie reveals £1.14m unpaid tax bill after launching fraud investigation >>

Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!). Subscribe today and save 51%

Start the discussion

Sign in to comment or register new account

Start the working day with

The Caterer’s free breakfast briefing email

Sign up now for:

  • The latest exclusives from across the industry
  • Innovations, new openings, business news and practical advice
  • The latest product innovations and supplier offers
Sign up for free