Department of Coffee

KPMG confirmed that the independent coffee chain has bought four Baker & Spice outlets in London

Coffee shop chain Department of Coffee and Social Affairs has acquired the London-based Baker & Spice bistro chain from the striken former parent company of Patisserie Valerie.

KPMG confirmed this morning that the independent coffee chain has bought four Baker & Spice outlets in London from Patisserie Holdings for a total of £2.5m.

The Baker & Spice outlets saved comprise those in Belgravia, Chelsea, Maida Vale and in Selfridges on Oxford Street, with a total of 68 employees transferring to Department of Coffee and Social Affairs.

The Baker & Spice store in Oxford is not part of the deal and will close with immediate effect, with the loss of 10 jobs.

Dave Costley-Wood, partner at KPMG and joint administrator, said: “Following the earlier sales of Patisserie Valerie and Philpotts, we are pleased to conclude this deal which sees the highly-regarded London Baker & Spice stores transfer to Department of Coffee and Social Affairs.”

Matthew Gill, deputy chairman, Department of Coffee and Social Affairs, said: “We’re very excited to now own Baker and Spice, it’s a tremendous brand and the team are looking to build upon its success.”

Yesterday KPMG struck a deal to sell cake retailer Patisserie Valerie to its newly installed management team via an MBO backed by Irish PE player Causeway Capital.

Separately, retailer and wholesaler A.F. Blakemore & Son has acquired all 21 stores of Midlands-based sandwich business Philpotts.

The two transactions were worth a combined consideration of £13m.

KPMG said the remaining assets not included in the three separate transactions will be realised during the administrations.