Patisserie Share Discussion Threads

[monte1] 22/1/2019 16:59

It’s goodnight folks.

I feel for the staff.

[4noddy] 22/1/2019 16:56

Well that's that then.

[lefrene] 22/1/2019 10:48

If I were currently not on the other side of the planet I would check them out sikhthetech. Perhaps the 'revamp' should include LJ learning how to check the EPOS figures for each store, just to check that they really are taking an average £200 an hour as previous figures suggested!

[sikhthetech] 22/1/2019 10:39

This from last week so before the current crisis talks...

I think someone said they visited the Cheltenham cafe...
They seem to be making some changes to entice more customers in...




Patisserie Valerie are relaunching and we checked out the new menu in Gloucester

"The company, which was plunged into financial uncertainty towards the end of last year, is relaunching all of its 200 cafés - including both the Cheltenham and Gloucester stores. The relaunch comes just days after the business lost another senior figure."

[hpcg] 22/1/2019 10:05

Evidence suggests there is no viable business to be saved. There probably is a business paying a proprietor manager in a few high foot fall West End locations, but no reason this could not start from scratch rather than the ruins of a fraud fest. An adult at one or both banks will write this off and move on.

[pugugly] 22/1/2019 08:38

LJ taking the credit for Pizza Express - It was not his concept nor was the initial roll out - the genius was Peter Boizot whom I knew - Great concept - well executed and slow rollout in London from the original branch in Wardour - Fresh flower on every table-
Now there was a man who knew how to build and run a business.

[lefrene] 22/1/2019 08:08

Perhaps a second career in politics beckons?

[masurenguy] 22/1/2019 08:01

PV floated just under 5 years ago. The optimistic comments below must sound hollow to those "long term investors" still holding today. I've had a couple of these scenarios in the past but fortunately not this one since I've never been invested here. My genuine commiserations to current shareholders.

"Floating a company costs a fortune, but this is necessary in order to list on a reputable exchange. This week there has been just one subject on my mind: the flotation of our company Patisserie Valerie. It is an all-consuming undertaking.

Our journey started almost eight years ago when we bought a six-strong chain of London patisseries. Since then we have expanded our group to almost 140 branches across the country. Now feels the right time to go public: the economy is thriving and the stock market has rediscovered its purpose – providing capital for flourishing enterprises. It is all very exciting. I have a sense of déjà vu about the whole experience. Twenty-one years ago I undertook the same exercise with a couple of colleagues, promoting a restaurant concept to the stock market called PizzaExpress. We floated it for about £25m, not fully realising what a fabulous opportunity the transaction represented: it was a formative moment in my career, and made everything else possible. Ironically, last week it was reported that PizzaExpress is for sale once more – valued this time at a reputed £1bn. 

Our roadshow is the culmination of months of preparation. Accountants and lawyers have been crawling all over our books, producing reams of detailed documents. There are rooms full of contracts, verification papers, warranties, indemnities, leases, health warnings and who knows what else. An analyst has carried out a 50-page study of our company. Public relations agents have been discussing our merits with the media. The whole circus costs a fortune in fees but is, I suppose, necessary if a company wants to list on a reputable exchange. We are looking for investors who understand our company and will hold for the long term." Luke Johnson in the FT

[blueball] 22/1/2019 07:16

Fast cake it scone.

[tradejunkie2] 21/1/2019 23:54

Could Luke offer the bank staff free cakes every day in lieu of a Loan perhaps?

Discuss.

[tradejunkie2] 21/1/2019 23:49

Patisserie Valerie lenders could be wiped out

[still waiting] 21/1/2019 22:07

Danny, maybe the bank's could collaterize the potential LJ earnings from his after dinner speeches on how to spot frauds !!

That should give them a tenners worth of cover.

[lefrene] 21/1/2019 22:04

I look forward to someone writing the book about this one. By the sounds of it LJ must be a hypnotist. Why did those Banks want to lend £15 million to somebody who plainly couldn't run a handful of cake shops? Is there something else which has yet to come to light, perhaps interconnected businesses carrying bank loans that might also fail if PV fails?

[augustusgloop] 21/1/2019 21:59

The banks will not normally 'pull the plug' if they think that they are going to get nothing back.
Usually, they would just 'freeze' the amount owed - allowing payments when the balance falls below this.

Is there anything here that could be used to pay creditors?

As Danny Baker said - there was nothing tangible for the bank to take a security charge over.

If they 'pull the plug' now - it would mean that they think that at least part of the business can be sold - giving them some payment.

If CAKE are losing money - then forcing an immediate sale of the viable shops maybe the banks preferred option.
If CAKE are making money - then allowing a more reasonable sale timescale would be a better option.

[danny baker] 21/1/2019 21:39

To have gained any security the banks would have needed a debenture which would have been registered at Companies House and therefore public knowledge. PatVal is an unusual business in that it has no property assets, no intellectual property, highly perishable stock and no debtor book. Apart from furniture and the kitchen equipment the tangible assets won't fetch much in a liquidation sale. From the banks' point of view there was nothing worth taking security over. Their only leverage is over LJ's last vestiges of a reputation. If he doesn't put the £10 million back that he took out from the placing then I am guessing they will demand immediate repayment of their loans pushing CAKE into administration. An awful situation for shareholders.

[sandy133] 21/1/2019 21:13

This supports the claim that other members of staff had no knowledge of what was going on.To have given security to the banks would have required board resolutions and copies of minutes.
Given the value of the company and the claimed profitability I suspect that there was not big problem getting the loans.

[sikhthetech] 21/1/2019 20:54

Patisserie Valerie lenders could be wiped out


"The Daily Telegraph has learned that HSBC and Barclays have no security over Patisserie Valerie's assets, meaning that if is forced into insolvency by an accounting scandal, loans of almost £10m will rank no higher than suppliers and other creditors."

[still waiting] 21/1/2019 19:25

A bit like Flybe when the credit lines ie suppliers get twitchy that 90-120 days credit soon gets pulled in.

[diku] 21/1/2019 19:20

Morale of the story is how easy is it to dupe those so called Institutional investors?.. when one is already in the game...

[augustusgloop] 21/1/2019 19:12

diku,

£10m went to LJ
But he had just put in £20m

So that leaves £25m to pay the debts & the bank (20+15-10)

[snoopy12] 21/1/2019 19:11

Luke Johnson has no interest in CAKE he is just their to show the city boys and keep his reputation intact that he tried. It will not surprise me if he does not pick up some cherries from the receivers. The days are limited as a going concern.

[tradejunkie2] 21/1/2019 18:52

I'd personally like to meet the board and splat each one of them with a cake for doing such a wonderful job in their book keeping and accounting basics.

The Banks should cut the cord unless Luke pays the debt.

[diku] 21/1/2019 18:28

Thought some of that £15mln went back to LJ for his loans...


augustusgloop
21 Jan '19 - 15:34 - 2626 of 2628
0   0  1



I'm sure that when the Institutions coughed up £15m in Oct they must have thought that their £15m and the £10m from LJ would have paid off the £10m loan.

£25m went in - but the £10m loan is still there.
What's going on?

Is the business currently losing £5+m per month?

[johnwise] 21/1/2019 15:58

Patisserie Valerie could go bust any moment as it scrambles to sign a deal with its lenders

[sikhthetech] 21/1/2019 15:37

agree... This seems to be bottomless... money was put in supposedly to plug the black hole..

How much is the debt?
Which shops are profitable?
I doubt any new IIs will put any more in without seeing concrete evidence of debt/business trading figures...