A CAFE chain with a store in Coventry has announced it has gone into administration.
Solihull-based Patisserie Holdings plc, which runs five brands – Patisserie Valerie, Druckers Vienna Patisserie, Baker and Spice, Flour Power City Bakery and Philpotts – confirmed the administration on Tuesday, January 22.
Administrators KPMG will close 70 outlets immediately, while the remaining 121 will continue trading in the hope of finding a buyer.
The move puts jobs at risk at Touchwood’s Druckers store.
KPMG said there would be “significant” redundancies.
The business said its chairman Luke Johnson had personally extended an unsecured, interest-free loan to help ensure January wages were paid to all staff working in the ongoing business.
In a statement the company said: “This Loan will also assist the administrators in trading as many profitable stores as possible while a sale process is undertaken.”
In October the company’s finance director Chris Marsh was suspended from his role, after the the cafe chain discovered “significant and potentially fraudulent” accounting irregularities.
An investigation is under way by the Serious Fraud Office
Nationwide, 3,000 jobs are at risk and up to 70 of 200 stores face closure.
A full list of stores affected is expected to be announced today.
Blair Nimmo, head of restructuring at KPMG and joint administrator, said: “Our intention is to continue trading across the profitable stores, as collectively, the brands have a strong presence on the high street and have proven very popular with consumers.
“At the same time, we will be seeking a buyer for the business and are hopeful of a good level of interest.
“Unfortunately, however, we have had to take the difficult decision to close 70 stores resulting in a significant number of redundancies. We will be working with those affected employees, providing all support and assistance they need.”