July 30, 2019

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Sports Direct’s Mike Ashley cancels Patisserie Valerie bid

Patisserie Valerie cafeImage copyright

Mike Ashley’s Sports Direct has cancelled a bid for collapsed cafe chain Patisserie Valerie, simply two days after making a proposal.

The retail billionaire introduced his bid for the chain on Friday night.

Sports Direct supplied £15m, however was advised by administrator KPMG it might want to supply as much as £2m greater than this, based on the Financial Times.

Patisserie Valerie collapsed final month. KPMG closed 70 retailers, however saved 121 open within the hope of promoting them.

Mr Ashley is considered going through a number of competing bids for Patisserie Valerie, together with, based on experiences, from Costa, the espresso chain purchased by Coca-Cola final 12 months.

The retail tycoon, who additionally owns English Premier League soccer membership Newcastle United, made his identify constructing finances chain Sports Direct into Britain’s greatest sporting items retailer.

He has since turn into identified for purchasing up struggling retail chains and acquired each division retailer chain House of Fraser and cycle store Evans out of administration final 12 months.

Sports Direct’s sprawling High Street empire additionally contains lingerie chain Agent Provocateur in addition to shareholdings in Debenhams, French Connection and Game Digital. Last week, it emerged as entrance runner to purchase Sofa.com.

Patisserie Valerie collapsed after an accounting scandal which left the agency with out sufficient cash to pay its money owed.

Rescue talks with banks HSBC and Barclays to restructure the enterprise broke down, leaving no choice however administration.

The cafe chain employed about 3,000 employees, however some 900 jobs had been misplaced within the preliminary wave of closures after KPMG was appointed to run the enterprise on 22 January.

Image copyright

  • The first cafe was opened on Frith Street in London’s Soho district in 1926
  • In 1987 the Scalzo household purchased the Old Compton Street retailer and ran the enterprise
  • In 2006, Luke Johnson’s Risk Capital Partners purchased a majority stake when it had eight shops.
  • Patisserie Valerie was floated on the AIM inventory market, for smaller firms, in 2014

In addition to Patisserie Valerie, the corporate’s different manufacturers embrace Druckers Vienna Patisserie, Philpotts, Baker & Spice and Flour Power City.

The Serious Fraud Office is finishing up a legal investigation into Patisserie Valerie and finance director Chris Marsh was arrested and launched on bail after having been suspended by the corporate.

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

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