Cake chain acquired
Irish group Causeway Capital buys Patisserie Valerie
Accounting irregularities were discovered at Patisserie Valerie (pic: Terry Murden)
Causeway Capital, an Irish private equity firm, is buying 96 Patisserie Valerie branches in a cut-price deal that will save 2,000 jobs.
The nationwide chain of 96 outlets has been snapped up for £13 million (not including the Baker and Spice chain) compared with a stock market value last year of £440m.
That valuation accounted for a large amount of the net worth of entrepreneur Luke Johnson, who helped build Patisserie Valerie when he bought it in 2006.
Matt Scaife, a spokesman for Causeway, 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. We are delighted to partner with the team and look forward to helping the business return to growth.”
Sports Direct owner Mike Ashley withdrew after expressing interest in the company which has been in business for 93 years but was thrown into disarray last October after discovering accounting irregularities.
The company was put into administration and the top management suspended. Last month KPMG announced that 70 stores would close.