Patisserie Valerie has sold its Baker & Spice chain to the Department of Coffee & Social Affairs for £2.5m.
The Department of Coffee & Social Affairs will add five Baker & Spice cafes to its list of 20 existing UK branches. The company also owns several cafes in the US.
The disposal of Baker & Spice comes days after Patisserie Valerie was bought by an Irish investment firm, Causeway Capital Partners.
Patisserie Valerie collapsed into administration last month after uncovering a £40m hole in its accounts due to “significant, and potentially fraudulent, accounting irregularities”.
CCP purchased the bakery chain out of administration, saving almost 2,000 jobs in the process.
The rescue deal included 96 of the cake maker’s sites, but did not include 27 other outlets belonging to the Philpotts and Baker & Spice brands. Philpotts has been sold in a separate deal.
Mike Ashley’s Sports Direct had been in the frame to snap up Patisserie Valerie but later withdrew after complaining about its treatment during the bidding process.
Sports Direct said it had not been allowed access to a data room, any financial information or meetings with management, leaving the company “at a serious disadvantage as a bidder”.
