Patisserie Valerie chairman pledges multimillion-pound rescue loan

Lloyd Doyle
October 15, 2018

The company's press release said the firm had been informed that Mr. Marsh "was arrested by the police last night and has been released on bail", adding that further updates would be released as developments unfolded.

In May, Patisserie-Valerie reported a 14.2 per cent rise in pre-tax profit for the six months ended March 31, up from £9.7 million to £11.1 million.

The firm is also looking to raise another £15m by issuing new shares.

Funds raised through the share placement will be used to pay back around half the money loaned by Mr Johnson, as well as to meet outstanding liabilities including the £1.14 million bill owed to HM Revenue & Customs.

It said: "The company has been made aware that Chris Marsh, who is now suspended from his role as company finance director, was arrested by the police last night and has been released on bail".

Hertfordshire Police confirmed that a 44-year-old man was arrested on suspicion of fraud by false representation and released under investigation yesterday evening.

The statement also said that the irregularities were also likely to have affected the historical financial statements of the company.

The rescue plan, unveiled after 48 hours of tense talks between the company and its advisers, came as the Serious Fraud Office formally opened an investigation.

"We can give no further information or comment at this time".

Patisserie Holdings said it would update the market in due course.

It has also been earmarked for "general working capital purposes and committed capital expenditure", Patisserie Holdings said.

The woes of Patisserie Holdings, which only past year the tycoon had described as "just about my most successful venture", are threatening to wipe out the majority of his £165 million stake in the business and to call into question his ability to do deals - the raison d'être of private equity.

Mr Marsh was later suspended from his role and accountancy giant PwC drafted in to look through the company's books.

Parent firm Patisserie Holdings has received a winding up petition for its principal trading unit Stonebeach.

It relates to £1.14m owed to HMRC.

It has five brands: Patisserie Valerie, Druckers - Vienna Patisserie, Philpotts, Baker & Spice and Flour Power City.

Landlords for at least two Patisserie Valerie locations in London - in Hammersmith and Edgeware Road - cancelled their lease agreements with the company over breach of contract.

Other reports by Iphone Fresh

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