Patisserie Valerie’s shareholders have approved a rescue plan for the troubled bakery chain with 99% voting in favour at a general meeting.
The approval will see £15m of new shares issued to private investors and follows a £20m funding injection by director Luke Johnson.
Johnson is said to have received a hostile reception at this morning’s meeting with the Financial Times saying that one shareholder reported feeling “extraordinarily let down”.
Johnson moved to save the company after historical statements on the cash position of the company were found to have been mis-stated and subject to both suspected fraudulent activity and accounting irregularities, including undeclared overdrafts amounting to £10m.
Patisserie Valerie has said it is continuing to work with advisers to understand the “extent of the previously announced financial misstatements and potential fraudulent activity”.
No information has yet been given as to when a suspension in the trading of ordinary shares will be lifted.
Patisserie Valerie is in the process of responding to enquiries from multiple regulators and authorities.
Former finance director Chris Marsh resigned last week after being suspended earlier this month and later arrested on suspicion of fraud by false representation.