Patisserie Valerie chairman pledges multimillion-pound rescue loan

15 October, 2018, 07:55 | Author: Regina Silva
  • The owner of Patisserie Valerie has said the chain needs “an immediate injection of capital” to continue trading

The company aims to raise £15m from selling new shares on the stock market.

The company, which employs 2,500 staff in more than 200 stores, said the funds raised through the planned share placement would be used to pay back around half the money loaned by Mr Johnson, as well as to meet outstanding liabilities including a £1.1m tax bill owed to HM Revenue & Customs.

The developments come after the Serious Fraud Office stated it had "opened a criminal investigation into an individual" on Friday, without mentioning names.

"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".

Patisserie Valerie's chairman has swooped in with a rescue loan package after a black hole in the company's accounts led to its finance chief being arrested on suspicion of fraud.

"A 44-year old man from St Albans has been arrested on suspicion of fraud by false representation".

"He has been released under investigation".

In a trading update yesterday afternoon Patisserie Valerie 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".

Jamal Khashoggi's Fiancée Pens Obituary-Style Op-Ed For Missing Saudi Writer
Benchmark Brent crude now trades above $80 a barrel and USA gasoline prices have risen ahead of the midterm elections. Pressed this week about the Khashoggi situation, Trump stopped short of criticizing or threatening Saudi Arabia.


Ariana Grande and Pete Davidson Split, Engagement Called Off
Ariana was supposed to perform, but did not because of "things that she's going through". Ariana Grande has reportedly called off her engagement to comedian Pete Davidson .


Doctors warn of alarming C-section 'epidemic'
That's up from 16 million in 2000, or 12 percent of all births, and significantly higher than the 10-15% considered medically necessary.


A further statement was expected from the company later on Friday to update investors on the hunt for new capital to shore up its finances.

Historical statements on the cash position of the company were misstated and subject to fraudulent activity and accounting irregularities, directors said.

Mr Marsh was suspended from his role while the circumstances of the financial black hole were examined internally.

Two Patisserie Valerie branches in London were closed on Friday, while the chain's parent company teetered on the brink of collapse.

The company has been struggling to stay afloat after "significant, and potentially fraudulent, accounting irregularities" were reported on Wednesday.

It relates to £1.14 million owed to HMRC.

Chairman Luke Johnson said at the time: "We are all deeply concerned about this news and the potential impact on the business".

The woes of Patisserie Holdings, which only past year the tycoon had described as "just about my most successful venture", are threatening to wipe out the majority of his £165 million stake in the business and to call into question his ability to do deals - the raison d'être of private equity.

Recommended:

  • UK's Cuadrilla to begin fracking on Oct 13 after injunction dismissed

    UK's Cuadrilla to begin fracking on Oct 13 after injunction dismissed

    Francis Egan, CEO of Cuadrilla, said: "We are delighted to be starting our hydraulic fracturing operations as planned". Work at Cuadrilla's Preese Hall site near Blackpool was suspended in 2011 after it was linked with two earth tremors .
    Trump Said Ulysses S. Grant Was Incredible, Not Robert E. Lee

    Trump Said Ulysses S. Grant Was Incredible, Not Robert E. Lee

    As we reported yesterday, on Friday night NBC News tweeted an out-of-context, selectively edited clip of President Donald J. Trump at a rally in Cincinnati, OH making what appeared to be complimentary remarks towards Confederate General Robert E.
    Khabib Nurmagomedov challenges Mayweather to fight: 'There is only one king'

    Khabib Nurmagomedov challenges Mayweather to fight: 'There is only one king'

    We have defended our honour and this is the most important thing. This one, as I said was nearly two years out. "In the jungle, there is only one king".
  • Prince Harry and Meghan arrive in Australia for royal tour

    The 16-day trip coincides with the fourth Invictus Games, beginning in Sydney on Saturday, and includes dozens of official events. This marks the Duke and Duchess of Sussex's first major overseas tour, to Australia, Fiji, the Kingdom of Tonga, and New Zealand.
    4 men fatally shot at toddler's birthday party in South Texas

    4 men fatally shot at toddler's birthday party in South Texas

    The Texas Rangers, a unit of the Texas Department of Public Safety, was leading the investigation. Brandley said police are on the hunt for two suspects believed to be connected to the shooting.
    Knocked out: Marvel's 'Iron Fist' gets the ax

    Knocked out: Marvel's 'Iron Fist' gets the ax

    The news came as a shock to fans who enjoyed Season 2 , which was received far better than the first season. There's also Disney's upcoming streaming service, which Deadline hints could be an option.
  • All Studs and no Duds in Seahawks Week 6 dismantling of Raiders

    All Studs and no Duds in Seahawks Week 6 dismantling of Raiders

    Now the Raiders are considering shaking up the roster even further, by shopping a couple former first-round draft picks. Sunday's 27-3 loss to the Seahawks is the Raiders' worst offensive performance since a 52-0 loss to the Rams in St.
    Canada sees little chance of quick end to US metals tariffs

    Canada sees little chance of quick end to US metals tariffs

    Companies that have applied for and been granted relief can now import these goods without paying surtaxes for a temporary basis. The release said the seven steel products include heavy plate, concrete reinforcing bar, and stainless steel wire, among others.

    Germany 'broke apart' in Nations League loss to Dutch - Joachim Low

    The victory gives the Dutch their first points of the Nations League, placing them one point behind first-placed France in League A Group 1.
  • Todd Gurley drives the Rams' offense with 3 scores on Sunday

    Todd Gurley drives the Rams' offense with 3 scores on Sunday

    This Rams offense is terribly well balanced, both in terms of play selection and in the number of players touching the ball. Facing third-and-23, Wilson was pressured from the pocket by Cory Littleton and Seattle punted with 3:38 left.
    Number of unvaccinated kids rises

    Number of unvaccinated kids rises

    Other research has shown that states with philosophical exemptions had both higher rates of refusal and higher rates of disease. However, "if it's hard to obtain an exemption, then you have lower rates of refusal and lower rates of disease", he said.
    NASA's Chandra telescope in safe mode due to glitch

    NASA's Chandra telescope in safe mode due to glitch

    Shortly after its announcement regarding Hubble, NASA has revealed that another of its space telescopes has entered safe mode . And the Curiosity rover's memory issues recently spurred mission team members to swap that robot over to its backup computer.


Popular

Khashoggi's fiancée says those responsible for disappearance must be held fully accountable
The Crown Prince has launched a series of social reforms in Saudi Arabia, including allowing women to drive. Journalists report from outside the Saudi Arabia's consulate in Istanbul, Sunday, Oct. 14, 2018.

Giants coach explains why Odell Beckham left field before halftime
The Giants had LB Ray Ray Amstrong (concussion), WR Cody Latimer (hamstring) and CB Antonio Hamilton (illness) leave the game. Not only do I think they need to start planning for the future, but there's going to be some decisions made.

Chiefs, Patriots missing key defensive players for matchup
A Patriots defense that forced two turnovers in the first half suddenly became vulnerable to the big play after halftime. The Chiefs next face the Bengals on Sunday, while the Patriots take on the Bears next week.

Malicious messages reportedly crashing PlayStation 4 consoles
Sony hasn't offered any guidance or responded to Mashable's request for comment, but a couple of crowdsourced fixes have surfaced. The bug, in some instances, has been used during matches to cause the opposing team to crash and be unable to complete a match.

Bitcoin Whales are Stabilizing the Market, Not Crashing it: Research
It is noteworthy to observe that only the traders, who account for a third of total whale shares are active buyers and sellers. Bitcoin , on the other hand, has witnessed a decrease in its prices by $300 - $1000 in a few hours of the day last month.

Twitter Roasts Bills QB Nathan Peterman For Horrendous Pick-Six Vs. Texans
Sophomore Nathan Peterman entered the game in relief of Allen, completing six passes and even finding Zay Jones in the end zone. O'Brien said Watson's injury did not affect the playcalling and called his quarterback "a fighter".

Restaurants told to shrink pizzas in obesity fight
The Telegraph also notes that more than one in five pupils by the time they leave primary school are classed as severely obese. They follow the government plan to halve rates of childhood obesity by 2030.

Trump steps up his attacks on Federal Reserve's rate hikes
He was persuaded by Treasury Secretary Steven Mnuchin that Powell, who was already a Fed governor, would be a force for stability. Unbelievably low interest rates from the Federal Reserve encouraged investors to take risk by piling into stocks.

Saudi Arabia hits back at Trump 'threats' of sanctions over missing journalist
The Crown Prince has launched a series of social reforms in Saudi Arabia , including allowing women to drive. However, Trump in the same interview said: "As of this moment, they deny it and they deny it vehemently".

IEA lowers its growth forecast in oil demand for 2018, 2019
The IEA report is the latest official forecaster to predict weaker demand ahead and conclude that supply is adequate. That followed three straight weeks of declines and was the largest weekly increase since the week ended August 10.