In-fighting at Patisserie Valerie over emergency fundraising plan
PUBLISHED: 11:10 06 November 2018 | UPDATED: 11:47 06 November 2018
Patisserie Valerie hit the headlines last month when it found a 'black hole' in its finances which threatened to topple the business.
Now the chairman of the chain, which has an outlet in Norwich, has had to face down criticism from shareholders to gain backing for a rescue plan.
Luke Johnson began a plan of emergency fundraising, which was enacted when the firm was just “three hours” away from going bankrupt.
Shareholders took aim at the emergency fundraising procedure, which they said would dilute their current stakes in the company.
One investor accused the company’s management of “holding a gun to our heads”.
More than 99% of investors backed the rescue plan after an emergency general meeting (EGM) for Patisserie Holdings this week, which is an AIM-listed parent of the cake chain.
Existing shareholders now hold diluted stakes in the company, with Mr Johnson’s own holding reduced from 37% to 27%.