Deal agreed to save Patisserie Valerie
Cafe chain Patisserie Valerie has been bought out of administration in a management buyout that is being backed by Irish private equity firm Causeway Capital.
A deal was agreed at 3am today and administrators from KPMG for Patisserie Holdings and its subsidiaries said the business of fresh food chain Philpotts had been sold in a separate transaction.
The deals collectively preserve all 117 stores and safeguard approximately 2,000 jobs.
The 96 remaining Patisserie Valerie stores have been acquired by Dublin-based Causeway.
A F Blakemore & Son, the Willenhall-based food retail, wholesale and distribution company, has acquired all 21 Philpotts sites across the UK, including four in Birmingham.
All members of staff across the Patisserie Valerie and Philpotts chains will transfer to the respective purchaser with immediate effect.
The joint administrators said that further announcements regarding the remaining Baker and Spice brand will be made in due course.
David Costley-Wood, partner at KPMG and joint administrator, commented: “To have been able to secure the future of the majority of the Patisserie Valerie and Philpotts business, along with such a significant number of jobs, all against a challenging backdrop, is really pleasing. It was clear from the outset of our appointment that the loyalty shown in the brands from their very many customers was a significant factor in ensuring that these businesses would remain part and parcel of our high streets.
“We are particularly grateful for the support of stakeholders, including the suppliers and employees, whose support throughout this process has been integral to securing such a positive outcome.”
The deal came after Mike Ashley’s Sports Direct dropped its offer to buy Birmingham-based Patisserie Valerie, complaining of being shut out of the bidding process.
Patisserie Valerie crashed into administration last month after talks with banks failed to save it after an investigation into long-term fraud of its accounts.
The Wolverhampton premises of Patisserie Valerie in Dudley Street and the Druckers in intu Merry Hill were among 71 stores in the Parisserie Valerie estate that administrators shut, resulting in 920 redundancies.
Patisserie Valerie is in Dudley Street in Wolverhampton city centre.
The Patisserie Valerie in Shrewsbury has continued to trade while the professional services firm sought a buyer for the business
Patisserie Valeries in Debenhams, Telford town centre, has also closed.
Prior to its collapse, the cafe and cake chain employed more than 3,000.
Patisserie Valerie was founded in 1926 by the Belgian-born Esther van Gyseghem, otherwise known as Madame Valerie.
Patisserie Valerie, which was chaired by businessman Luke Johnson, was put up for sale last month.tion.
Causeway Capital's Matt Scaife said: "Patisserie Valerie is heritage brand, much loved by its loyal customers. This investment should mark the end of a turbulent period for customers and suppliers alike."
Mr Francis said: "We are delighted to welcome Causeway Capital as our partners in Patisserie Valerie, ending a disruptive period of uncertainty for the business.
"The affection and loyalty for the brand among our customers and employees, and Causeway Capital's enthusiasm and support for the business, creates for us the foundations for an exciting future for the business. "
In 2006 Pizza Express founder Luke Johnson’s venture capital firm, Risk Capital Partners, bought a controlling stake in the company and expanded it into an Aim-listed company.
Causeway Capital, founded by a group of entrepreneurs in 2015, specialises in small and medium-sized investments. One of its companies is BB Bakers and Baristas, which operates 65 sites across the UK and Ireland.