Newly appointed administrator for collapsed Patisserie Holdings KPMG has confirmed that initial closures of loss-making outlets will lead to 920 job losses.
The administrator said that 27 Patisserie Valerie stores have been shuttered along with 19 stores under its Druckers café brand.
Additionally, 25 Patisserie Valerie concessions in Debenhams, Next and at motorway service areas have closed, alongside the company’s bakery in Spitalfields.
KPMG said that these closures have resulted in 920 redundancies.
Amongst those outlets closed are Patisserie Valerie stores in Leeds, Liverpool, Manchester, two in Glasgow and eight in London.
The company’s remaining 122 outlets will continue to trade while the administrators seek a buyer for the business.
David Costley-Wood, partner at KPMG and joint administrator, said: “Since our appointment less than 24 hours ago, we have been pleased with the level of interest we have received in the business, and so remain hopeful of achieving a positive outcome.
“In the meantime, we can reassure customers that across the remaining 122 stores, it is all but business as usual.”
Patisserie Holdings announced last evening it has fallen into administration after being unable to renew its banking facilities.
The listed group, which has had its shares suspended since the discovery of fraud left it close to collapse in October, said: “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 interest-free loan to help ensure that the January wages are paid to all staff working in the ongoing business.
These funds will also assist the administrators in trading as many profitable stores as possible while a sale process is undertaken.
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