Rescued by an Irish equity firm (Daniel LEAL-OLIVAS)

London (AFP) – British cafe chain Patisserie Valerie announced on Thursday that an Irish private equity firm has bought it out of administration, potentially saving nearly 2,000 jobs.

Dublin-based Causeway Capital Partners said it has purchased 96 Patisserie Valerie sites, but did not buy sister brands Philpotts and Baker & Spice.

“Patisserie Valerie is heritage brand, much loved by its loyal customers,” said Causeway Capital’s Matt Scaife. 

“This investment should mark the end of a turbulent period for customers and suppliers alike.”

The cafe chain fell into administration last month, threatening the jobs of almost 3,000 staff at its nearly 200 British locations.

It has already closed 70 stores, resulting in 920 redundancies.

The company had been put up for sale after the discovery of fraudulent activity in its accounts in October.

The firm admitted in January the extent of the fraud meant it was unable to renew its bank loans with HSBC and Barclays and it did not have sufficient funding to continue trading.

“We are delighted to welcome Causeway Capital as our partners in Patisserie Valerie, ending a disruptive period of uncertainty for the business,” said Patisserie Valerie chief executive Steve Francis.

He added the private equity firm had created “the foundations for an exciting future for the business. “

In a separate deal unveiled on Thursday, food wholesaler A.F. Blakemore & Son bought all 21 Philpotts stores.

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