Patisserie Valerie chairman pledges multimillion-pound rescue loan

15 October, 2018, 07:55 | Author: Regina Silva
  • Patisserie Valerie Chain Faces Crisis Over £20million Hole In Finances

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".

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.


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.


Prince Harry and Meghan Markle touch down in Australia for royal tour
The tour will conclude with a four-day trip to New Zealand, where they will be greeted by Prime Minister Jacinda Ardern. The program for their busy tour will also focus on youth leadership, the environment and conservation.


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:



Popular

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.

Seann Walsh Strictly: 'Cringey' reason star changed his name REVEALED
She started the statement insisting she is not a victim and ended it saying: I'm not sorry I took the cat, though. He wrote: "In light of the story in today's newspaper I would like to offer my honest apologies for my actions".

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 .

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.

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.

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 .

Princess Eugenie's Second Wedding Dress Will Make Your Jaw Drop
George's Chapel on the grounds of Windsor Castle in a traditional and classy event that set the bar high for all weddings to come. The photo also shows off her attractive diamond and emerald drop earrings , which were a wedding gift from the groom.

Dallas Cowboys: Defensive line must step up vs. Jaguars
The Jags feature a diverse skill set at their skill positions, getting 50+ yards from 6 different receivers last Sunday. Seattle has allowed over 25 points per game in the four games they played besides their matchup against Dallas.

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.

Facebook Messenger will soon have ‘Unsend message’ button
As a result of that discovery, Facebook hurriedly announced that it would make the feature available to all users soon . Facebook may be getting closer to launching an unsend feature for Facebook Messenger.