Gail's bakery sale delayed in further issues for Luke Johnson

Patisserie Valerie entrepreneur Luke Johnson faces issues with another of his brands after reports that the sale of bakery brand Gail’s has been put on hold.

 

Parent company Bread Holdings had put KPMG in place to advise on sale options; however, the process has been delayed, according to The Times.

 

Gail’s operates in nearly 40 sites after first opening in London in 2005. Johnson first invested in the firm in 2011.

 

Earlier in the year it had been rumoured that Patisserie Holdings, the parent company of Patisserie Valerie, would pick up the company. On Wednesday Patisserie Valerie shares were suspended pending an investigation into "significant, and potentially fraudulent, accounting irregularities" and "a potential material mis-statement of the company’s accounts".

 

The sale of Gail’s appears to have been put on hold before the issues surrounding Patisserie Valerie were revealed.

 

It comes as Johnson puts up a £20m rescue package for crisis-struck Patisserie Valerie, consisting of a £10m loan and a further bridging loan of up to £10m.

 

On Sunday the entrepreneur revealed that the pâtisserie chain had overdraft facilities amounting to almost £10m, of which the board had been unaware.

 

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