Patisserie Valerie in Peterborough shuts with immediate effect as company collapses into administration
Patisserie Valerie in Peterborough has shut the doors at both of its branches in the city as the company collapsed into administration last night.
The cafe chain had branches in Cathedral Square and at Haddon Services. A member of staff confirmed to the Peterborough Telegraph last night that both had closed with immediate effect.
Administrators notices have been put in the window of the Cathedral Square branch stating that it is now closed and that any customers with outstanding orders should contact the company's remaining Customer Services Team at [email protected]
The firm collapsed on Tuesday January 22 after it said discussions with its lenders HSBC and Barclays to extend a standstill agreement had come to nothing, leaving it with no option but to appoint KPMG as administrator.
Its parent company Patisserie Holdings has been grappling with the fallout of an accounting fraud.
It said: "Patisserie Holdings plc announces today that, as a direct result of the significant fraud referred to in previous announcements, it has been unable to renew its bank facilities, and therefore regrettably the business does not have sufficient funding to meet its liabilities as they fall due."
Chairman Luke Johnson has extended an unsecured, interest-free loan to help ensure that the January wages are paid to all staff working in the ongoing business, the company said.
The loan will also assist the administrators in trading as many profitable stores as possible while a sale process is undertaken.