Patisserie Valerie's Newcastle store revealed as one of 70 to close following collapse

Patisserie Valerie’s Newcastle branch has been revealed as one of the chain’s 71 branches and outlets to close following the company’s collapse.

The cake and bakery chain called in administrators after failing to reach an agreement with its bank to extend its lending facilities.

Patisserie Valerie appointed KPMG as its administrators, who proceeded to close 70 of the firm’s stores with immediate affect.

The luxury baker’s Newcastle branch, located on Grainger Street, is one of the sites to shut its doors, as is its store in Middlesbrough.

A sign placed in the shop’s window reads: “This store is now closed.

Patisserie Valerie's Newcastle branch has closed (Image: Jonathon Manning)

“If you have ordered a product that was due to be collected in this store, it will now be delivered to the closest store available. To find out which store your product will be delivered to and for more information regarding your order please contact the customer services team at supportoffice@patisserieholdings.co.uk.”

Along with the Newcastle branch, the firm’s shop in Middlesbrough has also been closed. However, its Durham branch remains open.

KPMG has confirmed that 27 Patisserie Valerie branches have been closed, along with 19 concessions in Druckers stores, and a further 25 locatede in branches of Debenhams, Next and motorway services. The company’s bakery in Spitalfields has also shut.

Combined, the closures have led to the loss of 920 jobs.

The future of the remaining 122 stores that remain open, is not guaranteed. If a rescue is not achieved it could lead to the loss of 3,000 jobs.

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.”

The bakery’s parent company, Patisserie Holdings, has been grappling with the fallout of an accounting fraud, which it revealed in October. The group’s finance director Chris Marsh was suspended from his role shortly after the announcement and was later arrested on suspicion of fraud, before being released.

The accounting irregularities have been cited as the reason the company could not extend its banking facilities.

Irregularities in the company’s books included thousands of false entries, which led to cashflow and profitability being even worse than initially thought.

The company was nearly forced to cease trading but a rescue plan was passed by shareholders in November resulting in the issue of £15 million worth of new shares.

In the meantime, chairman Luke Johnson has extended an unsecured interest-free loan to help pay staff working during the administration period.