Scandal-struck Patisserie Valerie said on Monday it is still in talks with its banks to land emergency cash as investors bemoaned being kept in the dark.
A deal with its lenders, HSBC and Barclays, expired on Friday but the chain said discussions to extend a loan are continuing. However, some shareholders are dissatisfied with how the process has been handled since an accounting scandal emerged in October.
Chris Boxall of Fundamental Asset Management told the BBC: “It’s a very simple business to understand. It’s three months on down the line now and we really don’t know anything.”
It emerged last week that its accounting scandal was worse than the £40 million blackhole it originally discovered. Without the cash Patisserie Valerie could go bust, be sold cheaply or will have to come up with an alternative rescue plan.
Laith Khalaf, a senior analyst at Hargreaves Lansdown, added: “The scandal raises serious questions about the financial reporting framework and a number of concurrent investigations are underway, which should provide some lessons.
"Equity investors are not expecting to get much back from Patisserie Valerie."
