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Sports Direct withdrew its offer to buy Valerie Pastry after only two days, complaining of being excluded from the bid process for the troubled coffee chain.
This decision comes after billionaire Mike Ashley's retail group publicly announced Friday the purchase of the chain of coffees that crashed in front of the administration last month after the discovery of an accounting fraud. long-term.
Mr. Ashley has always sought out distressed retailers, including recent moves for House of Fraser Department Store, Evans Cycles Bike Store Company and HMV Music Channel.
On Sunday, Sports Direct wrote to Valerie's pastry directors, KPMG, complaining about the lack of information needed to continue bidding for the group and its subsidiaries, including Baker & Spice and Philpotts.
Chris Wootton, Deputy Chief Financial Officer of Sports Direct, wrote to David Costley-Wood, KPMG's partner at the head of the administrative process, to tell him that he had made a "serious and substantial offer" of a amount exceeding £ 15 million. would need to increase this offer up to £ 2 million.
As a result, Sports Direct withdrew its interest, claiming that she needed more detailed financial information about Valerie's pastry business than the ones provided. Sports Direct also suggested that other parties made offers to the group going beyond what it was willing to pay.
In the letter – which was seen by the Financial Times – Mr Wootton said that "SD was not allowed to access a computer room, financial information or meetings with management."
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The financial information available in the public domain "is at best unreliable, seriously disadvantaging SD as a bidder," he wrote.
"SD has reluctantly decided to withdraw its bid for the companies because it is not able to match an offer of £ 18 + m without having access to a prior check, to financial information or to management meetings, "says the letter.
KPMG declined to comment, but one person in charge of the discussion said that Sports Direct had the opportunity to view detailed financial information about Patisserie Valerie.
Accounting irregularities led to the discovery last October of a deficit of £ 40 million in the finances of the coffee company. Chief Financial Officer Chris Marsh was suspended and resigned, followed shortly after by CEO Paul May.
According to a stock market announcement on Jan. 22, the failure of Valerie Pastry – after lengthy negotiations with its two largest lenders, HSBC and Barclays – was the "direct result" of the fraud. Discussions with the banks failed, leading to bankruptcy of the company.
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