Patisserie Valerie enters administration

Patisserie Valerie was one of the first companies to open at Rushden Lakes, in 2017
Patisserie Valerie was one of the first companies to open at Rushden Lakes, in 2017

Cake chain Patisserie Valerie has entered administration.

The firm, which has a cafe at Rushden Lakes, 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.