Patisserie Holdings in crunch talks with banks

By Sophie Witts contact

- Last updated on GMT

Patisserie Holdings in crunch talks with banks

Related tags: bakery

Patissere Holdings has said it is still in discussion with its bankers after confirming the misstatement of its accounts was worse than expected.

Luke Johnson, the bakery group’s executive chairman and largest shareholder, is seeking to extend the standstill of its bank facilities - which expired on 18 January.

The Sunday Times​ reports that if he fails, the group’s lenders HSBC and Barclay’s could demand repayment of £9.7m overdraft debt, potentially forcing the company to call in the administrators.

Johnson already ploughed £20m ​in to the group last year after it uncovered a multi-million-pound black hole in its accounts in October.

In an update on 16 January​ Patisserie Holdings described the misstatement of its accounts as ‘extensive’ with ‘very significant manipulation of the balance sheet and profit and loss accounts’, including thousands of false entries in to the company’s ledgers.

The company said today (21 January) it will ‘issue an update when [the discussions with its bankers] have concluded’.

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

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