Administrators find a buyer for scandal-hit Patisserie Valerie

Patisserie Valerie

Administrators for scandal-hit Patisserie Valerie have sold the business to Dublin-based private equity fund Causeway Capital, it was confirmed today.

Sister business Philpotts meanwhile, which is also part of the group, has been sold in a separate deal to food wholesaler A.F.Blakemore.

Together the two transactions raised a total of £13m comprising £10m cash and £3m deferred consideration.

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Strong interest has also been received for Baker and Spice and an update will be provided shortly, administrators KPMG said.

Patisserie Valerie entered into administration on January 22 after talks to get its bank facilities renewed broke down.

The company was plunged into chaos in October when a £20m black hole was discovered in its books.

Bosses at the firm recently admitted that the multi-million pound fraud it uncovered was worse than it first thought.

Work carried out by the company’s forensic accountants has revealed that the misstatement of its accounts was “extensive”, involving “very significant” manipulation of the balance sheet and profit and loss accounts.

“Among other manipulations, this involved thousands of false entries into the company’s ledgers. It will take some time before a reliable trading outlook can be completed while the above work streams progress,” the company stated.

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Andrew Seymour

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