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The chain of cafes in pastry Valerie could collapse Monday if last-minute talks with its banks fail.
Luke Johnson, the largest shareholder in Valerie Pastry, is seeking to extend a standstill agreement on its banking facilities – protecting the channel against any debt collection action – which officially expired at midnight on Friday.
Without an agreement, the company's lenders, HSBC and Barclays, could demand the repayment of debts of up to 10 million pounds, potentially forcing Patisserie Valerie to use directors.
Johnson, the multimillionaire, pumped 20 million pounds into the bakery Valerie to keep it afloat after it discovered "potentially fraudulent" irregularities and a financial black hole in October. Johnson was repaid £ 10 million after other shareholders had invested £ 15 million in new funds.
The company, which operates 200 cafés and employs 3,000 people, is expected to provide an official update on its stock market position on Monday.
In a statement released last week, Valerie Bakery warned that profits would be "significantly lower" than the estimated £ 12 million when the company began reporting its fears of fraud. Cash flow was also much lower than expected.
The chain revealed that it had hired the KPMG consulting firm to look at all the options, citing the badumption that Valerie's pastry shop could be facing insolvency, mbadive store closures or an exchange. share-based receivables.
On Sunday, Johnson could not be contacted and Patisserie Holdings declined to comment on developments over the weekend.
The shareholders of the Valerie pastry, previously worth £ 450 million, suffer considerable losses. Shares were suspended in October and have yet to resume trading.
The company's chief financial officer, Chris Marsh, was arrested by the Hertfordshire police and released on bail in October. He resigned this month. The Serious Fraud Office has confirmed that it has opened a criminal investigation into an individual, but has not given additional details.
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