Collapse nears as Patisserie Valerie reveals ‘no scope to continue’

The crisis at Patisserie Valerie is accelerating after its directors announced there is “no scope” for the business to continue trading in its current form without an “immediate” injection of capital.

The troubled cake retailer employs around 2,500 people and is on the brink of a sudden and unexpected collapse.

In its third update to the stock market in just 30 hours, it said it is “assessing all options available to the business to keep it trading “.

Yesterday, the Birmingham-based company revealed it has been served with a winding-up petition from HMRC on its main trading subsidiary, Stonebeach. HMRC is chasing £1.14m it is owed.

The news was a further blow to the business, which suspended its shares on Wednesday morning after it found “significant and potentially fraudulent” accounting irregularities.

The announcement also revealed the suspension of its chief financial officer Chris Marsh, who has been in post since 2006.

This latest statement to the stock market said: “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.

“Without an immediate injection of capital, the directors are of the view that that is no scope for the business to continue trading in its current form.”