Portfolio

Patisserie Valerie still in talks with banks

By Oliver Haill

Date: Monday 21 Jan 2019

Patisserie Valerie still in talks with banks

(Sharecast News) - Patisserie Valerie cafe chain owner Patisserie Holdings confirmed on Monday that it is still in talks with its lenders about providing continued support for the company.
The company said last Wednesday that it had discovered thousands of false entries into its ledgers, that its profitability was likely to be much lower than it originally estimated but that it was in discussions to extend the standstill of its bank facilities beyond 18 January.

However, no announcement was forthcoming from the company on Friday.

HSBC and Barclays are owed £9.7m, but investors, the Sunday Times reported, are calling for the banks to grant some leeway on repayment rather than tip Patisserie Valerie into administration.

The owner of the Patisserie Valerie and Druckers chains said last week that its forensic accountants had found "extensive" misstatement of its accounts, with "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 said.

KPMG has been appointed to carry out a "review of all options available".

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