Just hours after a criminal investigation was launched into potential fraudulent activity at Patisserie Valerie, its executive chairman has come up with a rescue plan.
Patisserie Holdings has a net debt of about £9.8m. Luke Johnson has reportedly agreed to a £10m interest-free three-year loan, while the group also proposes to raise another £15m by selling new shares.
All this will help the group to “continue trading in its current form for the foreseeable future”. Read the full statement here:
Latest from Patisserie Valerie: It needs no less that £20m to survive. Luke Johnson plans to loan the firm £10m (interest free), another £15m to be raised in an equity and debt fundraising. Group says it has net debt of £9.8m. Full statement below worth a read… pic.twitter.com/EoRHYo4Bgy
— Emily Hardy (@Emily_L_Hardy) October 12, 2018
Patisserie Valerie saved. Luke Johnson puts in 10 million in form of 3 year loan to company. A further 15 million raised from selling new shares to institutional investors. Huge relief for 2500 workers. More to come
— Simon Jack (@BBCSimonJack) October 12, 2018
This development comes as a major relief to its 2500 workers.