Patisserie Valerie has warned that it is on the brink of collapse and needs”an immediate injection of capital” in order to continue trading.
Patisserie Holdings, owner of the brand, said in a statement: “The directors are of the view that that is no scope for the business to continue trading in its current form.
“During the last twenty-four hours, we have undertaken further investigation into the financial status of the company. The board has now reached the conclusion that there is a material shortfall between the reported financial status and the current financial status of the business.
“As a consequence, the directors and the company’s professional advisers are assessing all options available to the business to keep it trading and will update the market.”
In its most recent results statement in May, the firm said it had cash reserves of £28.8m.
On Wednesday (10 October), shares in the company were suspended before trading, as the firm became aware of an HMRC winding-up petition against its principal subsidiary Stonebeach, with the tax body seeking a payment of £1.14m.
Patisserie Valerie is owned by Luke Johnson, who owns 37% shares in the company, following initial investment in 2006. He is a serial entrepreneur who also took control of Pizza Express in 1993 before selling the group in 1999.
There is no word on the future of more than 2,500 staff which Patisserie Valerie employs.