Nearly 2,000 jobs saved as private equity firm rescues Patisserie Valerie

Patisserie Valerie has been bought out of administration by Irish private equity firm Causeway Capital, saving 96 shops and nearly 2,000 jobs.

Separately, Black Country-based food retail, wholesale and distribution company A.F. Blakemore & Son, which owns a string of Spar shops, has acquired all of the chain’s 21 Philpotts stores across the UK.

In a statement to the stock market, Patisserie Holdings said: “Patisserie Holdings has today completed the sale of Patisserie Valerie to Dublin-based Causeway Capital and Philpotts to A.F.Blakemore for a total consideration of £13m comprising £10m cash and £3m deferred consideration.”

The company added that “strong interest” has also been received for sister brand Baker and Spice and that an update will be provided shortly.

Matt Scaife, a partner at Dublin-based Causeway Capital, said: “Patisserie Valerie is a heritage brand much loved by its loyal customers. We are delighted to partner with the team and look forward to helping the business return to growth.”

Patisserie Valerie has been fighting for its survival since October when accounting irregularities were uncovered.

When the extent of fraud came to light it left the business unable to renew its bank loans, forcing it to appoint administrators.

KPMG has already closed 70 stores, resulting in 920 redundancies.

The Serious Fraud Office is carrying out a criminal investigation into Patisserie Valerie and finance director Chris Marsh who was arrested and released on bail.

Also under investigation, by the Financial Reporting Council, are former Patisserie Valerie auditors Grant Thornton.

Causeway Capital has a small presence in the cafe sector, owning BB Bakers & Baristas.