Patisserie Holdings' rescue deal backed by angry shareholders

By Sophie Witts contact

- Last updated on GMT

Patisserie Holdings' rescue deal backed by angry shareholders
Shareholders in the troubled Patisserie Holdings group have overwhelmingly backed a rescue plan to secure the future of the business.

More than 99% of shareholders voted in favour of issuing £15m in new shares at a meeting today.

Chairman Luke Johnson is also investing £20m of his own money in to the company to keep it trading after a £40m blackhole in its accounts was uncovered earlier this month.

The BBC​ reports that Johnson faced animosity from shareholders at today’s meeting, with many angry that new investors were getting a share of the company at a lower price.

They also accused him of "holding a gun" to their heads over the rescue package.

Johnson previously owned 37% of Patisserie Holdings, but now owns 28.54% share capital.

The serial hospitality entrepreneur, who founded Strada and previously chaired PizzaExpress, told shareholders that he would be stepping back from a “significant number” of other company boards to focus on Patisserie Holdings.

The group employs around 2,500 people across five brands: Patisserie Valerie, Philpotts, Baker & Spice, Flour Power City and Druckers – Vienna Patisserie.

Its finance director Chris Marsh resigned last week, and is subject to a criminal investigation.

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