Jobs at risk as Patisserie Valerie goes into administration

Jobs at the Shrewsbury and Telford branches of Patisserie Valerie are at risk after the chain went into administration this afternoon.

The company said talks with its lenders HSBC and Barclays had been unsuccessful, which left it with no option but to appoint KPMG as administrator.

Patisserie Valerie uncovered 'potentially fraudulent' accounting irregularities in October.

Parent company Patisserie Holdings plc, said: "Patisserie Holdings plc announces today that, as a direct result of the significant fraud referred to in previous announcements, it has been unable to renew its bank facilities, and therefore regrettably the business does not have sufficient funding to meet its liabilities as they fall due."

Chairman Luke Johnson has extended an unsecured, interest-free loan to help ensure that the January wages are paid to all staff working in the ongoing business, the company added.

The loan will also assist the administrators in trading as many profitable stores as possible while a sale process is undertaken.

The chain has branches in The Square, Shrewsbury and Debenhams in Telford Shopping Centre.

In total 2,800 jobs are at risk across its 206 sites.