Patisserie Holdings, the parent company of Patisserie Valerie, is set to be liquidated depending on the approval of creditors.
Administrators at KPMG have proposed that the company be placed into creditors’ voluntary liquidation and Paul Allen and Geoff Rowley of FRP Advisory be appointed joint liquidators. Creditors are expected to vote on the proposals by the end of today.
In the progress report for the period 22 January to 21 July 2019 for Patisserie Holdings, the non-trading ultimate parent of Patisserie Valerie, the administrators said they “do not expect to realise any value from the company’s investments in subsidiaries”.
Preferential claims are estimated at £835,000, however it is believed there may be insufficient assets “to make a distribution to preferential [or unsecured] creditors”.
The report also said there has been no repayment to date of the £2.45m Luke Johnson pumped into the business to fund the wages of retained staff during the administration and pay administration fees. Repayment is “dependent upon future asset realisations”.
The collapse of Patisserie Valerie followed the discovery of “significant, and potentially fraudulent, accounting irregularities” in October 2018.
Patisserie Holdings fell into administration in January after rescue talks with banks failed, resulting in the closure of 71 stores and 920 redundancies. Criminal investigations are ongoing.
The brand’s remaining 96 branches were sold to Ireland-based Causeway Capital Partners. AF Blakemore & Son acquired all 21 UK stores of subsidiary Philpotts. The two deals had a combined value of £13m. The Baker & Spice subsidiary was sold separately to the Department of Coffee & Social Affairs for £2.5m.