Bakery chain Patisserie Valerie has been bought out of administration by Irish equity firm Causeway Capital Partners (CCP) for an undisclosed sum.
The transaction was funded with investment from Causeway Capital and the new management of the business. Steve Francis will remain as the chain’s chief executive officer.
Some 96 of the company’s remaining 121 sites are expected to remain open which will save roughly 2,000 jobs. The chain will continue to trade as a standalone business and not be merged with any of CCP’s other businesses which include bakery and coffee chain, BBs Bakers + Baristas.
Patisserie Valerie entered administration in January, months after potentially fraudulent activities were discovered within its accounts. The discovery led to its CFO Chris Marsh being suspended before he was arrested and put under investigation by the Serious Fraud Office. He later resigned.
The company later found its accounts were “significantly” manipulated and following discussions with its bankers, said it didn’t have “sufficient funding to meet its liabilities”. KPMG was appointed as administrators and it was announced that 70 outlets would be closed while it attempted to seek a buyer.
Partner at CCP, Matt Scaife, told Catering Today: “Patisserie Valerie is 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.”
Steve Francis, chief executive of Patisserie Valerie, 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.”