It was finally curtains for Patisserie Valerie (CAKE) this week as the café chain announced that it would enter administration after failing to renew its banking facilities, meaning it did not have sufficient funding to meet its liabilities. This was a “direct result” of the significant fraud, management said, which produced accounts showing £28m in cash, misrepresenting the £9.8m in net debt that was actually on its books, with “thousands of false entries” in its ledgers. The shares have been suspended at 429.5p since October. KPMG, which is acting as administrator, said 70 of the chain’s stores and concessions would close immediately.
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