Cake chain Patisserie Valerie will cease trading without an ‘immediate’ cash injection after discovering a major black hole in its finances.
The cafe's parent company Patisserie Holdings made the admission in a market announcement today (October 11), after being slapped with a winding up petition over unpaid taxes and unearthing potentially fraudulent accounting irregularities a day earlier.
Patisserie Valerie has a store at the Gunwharf Quays shopping centre in Portsmouth.
Love your High Street
The news comes after The News and Johnston Press launched their national Love Your High Street campaign with the aim of focusing more attention on what can be done now to support small shops and businesses.
Immediate cash injection needed
Patisserie Holdings said: ‘The company, in conjunction with its professional advisers, has during the last 24 hours, 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,’ the company added.
‘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.’
It said the company's directors and professional advisers are ‘assessing all options available to the business to keep it trading’.
Patisserie Holdings said it would update the market in due course.
The news follows the announcement that WHSmith will be shutting six stores nationally as part of an overhaul of its under-pressure high street business as it revealed sliding sales and profits at the division.