Patisserie Valerie sold to Irish private equity firm

Troubled bakery chain Patisserie Valerie has been sold to Ireland-based Causeway Capital Partners.

Patisserie Valerie's parent company Patisserie Holdings fell into administration last month after rescue talks with banks failed, resulting in the closure of 71 stores and 920 redundancies.

The collapse followed the discovery of "significant, and potentially fraudulent, accounting irregularities" in October 2018.

The deal will see Causeway Capital Partners take on Patisserie Valerie's remaining 96 branches with CEO Steve Francis continuing to lead the business. A.F. Blakemore & Son has separately acquired all 21 UK stores of Patisserie Holdings subsidiary, Philpotts. The two deals had a combined value of £13m.

Matt Scaife of Causeway Capital said: "Patisserie Valerie is a heritage brand, much loved by its loyal customers. This investment should mark the end of a turbulent period for customers and suppliers alike. We are delighted to partner with the team and look forward to helping the business return to growth."

Francis added: "We are delighted to welcome Causeway Capital as our partners in Patisserie Valerie, ending a disruptive period of uncertainty for the business. The affection and loyalty for the brand among our customers and employees, and Causeway Capital's enthusiasm and support for the business, creates for us the foundations for an exciting future for the business."

Approximately 2,000 Patisserie Valerie employees will transfer to a new corporate entity with their existing employment rights and benefits honoured.

David Costley-Wood, partner at KPMG and joint administrator, commented: "To have been able to secure the future of the majority of the Patisserie Valerie and Philpotts business, along with such a significant number of jobs, all against a challenging backdrop, is really pleasing. It was clear from the outset of our appointment that the loyalty shown in the brands from their very many customers was a significant factor in ensuring that these businesses would remain part and parcel of our high streets.

"We are particularly grateful for the support of stakeholders, including the suppliers and employees, whose support throughout this process has been integral to securing such a positive outcome."

Administrators reported that strong interest has also been received for subsidiary Baker and Spice.

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