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One percent

Cake no more

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Well, it might help with the obesity problem. 

https://www.bbc.co.uk/news/business-45824285

The owner of Patisserie Valerie has said the cafe chain needs "an immediate injection of capital" to continue trading in its current form.

The stark statement to investors comes after the firm uncovered "significant, and potentially fraudulent, accounting irregularities".

It also belatedly discovered HMRC filed a winding-up petition against one of its principal subsidiaries in September and is seeking £1.14m in taxes.

The firm has more than 2,500 staff.

The company announced earlier this week that finance director Chris Marsh had been suspended.

Staff told the So-Called BBC that they have not been told anything by the company at all, and even the store managers are in the dark.

"I suppose it's because there's nothing wrong, but will we get paid our next month's salary in three weeks' time?" said an employee, who asked not to be named.

A long-term employee, who has worked for the company under both its current owner Risk Capital Partners and the previous owners, the Scalzo family, told the So-Called BBC that she only found out about Patisserie Valerie's problems through media coverage.

 

I think I see what the problem may have been  in bold above 

 

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RNS just out:

The Company has been made aware that Chris Marsh, who is currently suspended from his role as Company Finance Director, was arrested by the police last night and has been released on bail. Further updates will be released in due course as appropriate.

 

From CAKE to porridge...

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Seriously dodgy accounting practices eh.

Still, it's a white colour crime so nobody will go to jail - should have been a bankster that way he'd still get a massive pay-off!

... steal a bottle of water in a riot and you'll get 6 months inside though ...

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I find that in a tougher trading environment the retailers that start tumbling like ninepins are the ones of whom most people have never heard.

I mean Patisserie Valerie?  I can hardly see that having a high street presence in Chard.

There was another one yesterday where again the first time I hear of it is when it is going bust:

 

Quote

 

Women's fashion retailer Coast has gone into administration, putting 300 jobs at risk, in a sign of continuing pain on the High Street.

The collapse means the immediate closure of its 24 stores at locations including Oxford Street in London.

Karen Millen has bought some parts of Coast, whose website and department store concessions will keep trading.

About 600 staff will transfer to Karen Millen, but the remaining 300 workers now face an uncertain future.

Coast was owned by Aurora Fashions, which also owns retailers Oasis and Warehouse. Aurora is controlled by Icelandic bank Kaupthing, which also owns Karen Millen.

The retailer had numerous concessions in House of Fraser and was owed millions after the department store chain itself collapsed earlier this year.

 

https://www.bbc.co.uk/news/business-45830031

 

These are both fickle discretionary spend operations dependent upon their being in vogue with Facebook likes and, um, Vogue.

What you've never had you never miss.

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13 minutes ago, Frank Hovis said:

I find that in a tougher trading environment the retailers that start tumbling like ninepins are the ones of whom most people have never heard.

I mean Patisserie Valerie?  I can hardly see that having a high street presence in Chard.

There was another one yesterday where again the first time I hear of it is when it is going bust:

 

https://www.bbc.co.uk/news/business-45830031

 

These are both fickle discretionary spend operations dependent upon their being in vogue with Facebook likes and, um, Vogue.

What you've never had you never miss.

Fat people are gojgn to miss CAKE ...

FD arrested.

Ohdear.

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32 minutes ago, Frank Hovis said:

I find that in a tougher trading environment the retailers that start tumbling like ninepins are the ones of whom most people have never heard.

I mean Patisserie Valerie?  I can hardly see that having a high street presence in Chard.

There was another one yesterday where again the first time I hear of it is when it is going bust:

 

https://www.bbc.co.uk/news/business-45830031

 

These are both fickle discretionary spend operations dependent upon their being in vogue with Facebook likes and, um, Vogue.

What you've never had you never miss.

There is one of these cake shops in the centre of Middlesbrough. It looked a little incongruous when I passed. 

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11 minutes ago, ashestoashes said:

can greggs do a chocolate eclair or gateaux

Steaky bake + Nutella.

31 minutes ago, One percent said:

There is one of these cake shops in the centre of Middlesbrough. It looked a little incongruous when I passed. 

Are you one the game onesie .....

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56 minutes ago, Frank Hovis said:

I find that in a tougher trading environment the retailers that start tumbling like ninepins are the ones of whom most people have never heard.

I mean Patisserie Valerie?  I can hardly see that having a high street presence in Chard.

There was another one yesterday where again the first time I hear of it is when it is going bust:

 

https://www.bbc.co.uk/news/business-45830031

 

These are both fickle discretionary spend operations dependent upon their being in vogue with Facebook likes and, um, Vogue.

What you've never had you never miss.

It is (likely) the same old story of niche success thinking that the model is scaleable.

I went (with GF*) into a Patisserie Valerie back in the day --it was an experience akin to sandwiches at the Savoy or lunch at the Ivy.

I went (with wife*) into the Patisserie Valerie in Reading a couple of years ago -- nice girly place to have a cup of tea, I suppose, but not that experience.  

It has gone from that once in a blue moon experience (supports 3x outlets (at the time) in the centre of London), to an expectation that it's an every week experience -- and that's just a fashion thing (which is difficult to keep going).

I'm reminded of the 'Troubleshooter' from back in the 80's where John Harvey Jones went to a load of businesses and told them what they should do to expand.  The only one to survive his advice (IIRC) is Morgan Cars, who resolutely told him that the market for their product was small and that they'd introduce market risk by expanding.

[Not that Morgan has kept to that model -- they've expanded more recently and will suffer when the crash comes]

[* Men and women are the same, so I don't understand how come in my world it's mostly women that want to spend at Patisserie Valerie]

 

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7 minutes ago, dgul said:

It is (likely) the same old story of niche success thinking that the model is scaleable.

I went (with GF*) into a Patisserie Valerie back in the day --it was an experience akin to sandwiches at the Savoy or lunch at the Ivy.

I went (with wife*) into the Patisserie Valerie in Reading a couple of years ago -- nice girly place to have a cup of tea, I suppose, but not that experience.  

It has gone from that once in a blue moon experience (supports 3x outlets (at the time) in the centre of London), to an expectation that it's an every week experience -- and that's just a fashion thing (which is difficult to keep going).

I'm reminded of the 'Troubleshooter' from back in the 80's where John Harvey Jones went to a load of businesses and told them what they should do to expand.  The only one to survive his advice (IIRC) is Morgan Cars, who resolutely told him that the market for their product was small and that they'd introduce market risk by expanding.

[Not that Morgan has kept to that model -- they've expanded more recently and will suffer when the crash comes]

[* Men and women are the same, so I don't understand how come in my world it's mostly women that want to spend at Patisserie Valerie]

 

The Ivy are opening up crappy chain versions in every high street too.

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6 minutes ago, Hail the Tripod said:

The Ivy are opening up crappy chain versions in every high street too.

 

16 minutes ago, dgul said:

It is (likely) the same old story of niche success thinking that the model is scaleable.

I went (with GF*) into a Patisserie Valerie back in the day --it was an experience akin to sandwiches at the Savoy or lunch at the Ivy.

I went (with wife*) into the Patisserie Valerie in Reading a couple of years ago -- nice girly place to have a cup of tea, I suppose, but not that experience.  

It has gone from that once in a blue moon experience (supports 3x outlets (at the time) in the centre of London), to an expectation that it's an every week experience -- and that's just a fashion thing (which is difficult to keep going).

I'm reminded of the 'Troubleshooter' from back in the 80's where John Harvey Jones went to a load of businesses and told them what they should do to expand.  The only one to survive his advice (IIRC) is Morgan Cars, who resolutely told him that the market for their product was small and that they'd introduce market risk by expanding.

[Not that Morgan has kept to that model -- they've expanded more recently and will suffer when the crash comes]

[* Men and women are the same, so I don't understand how come in my world it's mostly women that want to spend at Patisserie Valerie]

 

 

There were a few restuarants who did this.  Didn't Jamie Oliver run into trouble recently?

They go from one restaurant where the big name chef is actually cooking to dozens where the minimum wage youth experience lackey in the kitchen is trying to follow some photocopied instructions about how to drizzle olive oil.

Of course it's not going to be the same and people will go there once and never again.

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7 minutes ago, Hail the Tripod said:

The Ivy are opening up crappy chain versions in every high street too.

I only went there once.  The whole point was that there was only one.  If there are lots how on earth can you show off about how exclusive it is (you are).

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17 minutes ago, dgul said:

It is (likely) the same old story of niche success thinking that the model is scaleable.

I went (with GF*) into a Patisserie Valerie back in the day --it was an experience akin to sandwiches at the Savoy or lunch at the Ivy.

I went (with wife*) into the Patisserie Valerie in Reading a couple of years ago -- nice girly place to have a cup of tea, I suppose, but not that experience.  

It has gone from that once in a blue moon experience (supports 3x outlets (at the time) in the centre of London), to an expectation that it's an every week experience -- and that's just a fashion thing (which is difficult to keep going).

I'm reminded of the 'Troubleshooter' from back in the 80's where John Harvey Jones went to a load of businesses and told them what they should do to expand.  The only one to survive his advice (IIRC) is Morgan Cars, who resolutely told him that the market for their product was small and that they'd introduce market risk by expanding.

[Not that Morgan has kept to that model -- they've expanded more recently and will suffer when the crash comes]

[* Men and women are the same, so I don't understand how come in my world it's mostly women that want to spend at Patisserie Valerie]

 

Excellent post. Many modern business woes seem to stem from rapid exponential expansion, the thinking that a small business that was carefully built up perhaps over decades by a family firm can suddenly just be catapulted into national or global success by massive  borrowing. It's like taking the work of an artist, whose original paintings sell for £1000, then cheaply and badly blowing his paintings up on a photcopier ten thousand times and trying to sell them for the same price. What's worse is you've borrowed the money for a very expensive photocopier and are hocked up to the eyeballs paying the rent for all the shops to sell the pictures in. 

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My wife worked in one for nearly 10 years, she was at Druckers when they bought them. She left in February. I always found it amazing that they sold enough coffee and cakes to pay the rent on a large unit in a big suburban shopping centre, and the equivalent of probably 8-10 full time staff (wife was part time), but apparently the store was profitable.

But I agree that it's most likely a case of private equity buys a smallish business, takes out a load of debt to massively expand it, and then floats it for profitzzzz . There's a Pat Val concession in Beaconsfield services, I have never seen a customer there as I walk past on the way to McDonalds.

Come to think of it, I've had similar- ended up working for Jessops when they bought Tecno, was there while they went for massive expansion and a float, left before they went bust. Next time the wife or I leave a company I'm shorting the shit out of it.

Edited by Rave

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18 minutes ago, dgul said:

I'm reminded of the 'Troubleshooter' from back in the 80's where John Harvey Jones went to a load of businesses and told them what they should do to expand.  The only one to survive his advice (IIRC) is Morgan Cars, who resolutely told him that the market for their product was small and that they'd introduce market risk by expanding.

[Not that Morgan has kept to that model -- they've expanded more recently and will suffer when the crash comes]

Substitute Sir John Harvey Jones with Liberty Media and Morgan Cars with F1.

Same story.

 

 

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Just an FYI Mail Online has locked comments on this. Normally I would lock the thread too however I will let it run, but be aware of libel etc. :Old:

https://www.dailymail.co.uk/news/article-6268589/Patisserie-Valerie-finance-chief-arrested-20million-black-hole-chains-funds.html

It does seem that the MSM are angling for the "HMRC sinks business" by demanding the tax bill. Bit of a damned if you do, damned if you don't situation for them really. If they suddenly drop the £1m tax demand then people will whine how it's one rule for the rich etc.

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22 minutes ago, spunko said:

Just an FYI Mail Online has locked comments on this. Normally I would lock the thread too however I will let it run, but be aware of libel etc. :Old:

https://www.dailymail.co.uk/news/article-6268589/Patisserie-Valerie-finance-chief-arrested-20million-black-hole-chains-funds.html

It does seem that the MSM are angling for the "HMRC sinks business" by demanding the tax bill. Bit of a damned if you do, damned if you don't situation for them really. If they suddenly drop the £1m tax demand then people will whine how it's one rule for the rich etc.

Well it is but they need to be a little bit subtle about it 

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30 minutes ago, spunko said:

Just an FYI Mail Online has locked comments on this. Normally I would lock the thread too however I will let it run, but be aware of libel etc. :Old:

https://www.dailymail.co.uk/news/article-6268589/Patisserie-Valerie-finance-chief-arrested-20million-black-hole-chains-funds.html

It does seem that the MSM are angling for the "HMRC sinks business" by demanding the tax bill. Bit of a damned if you do, damned if you don't situation for them really. If they suddenly drop the £1m tax demand then people will whine how it's one rule for the rich etc.

Don't think you need to worry about libel, the thread will wander off topic towards cake in general and then slag off fat women for eating it :)

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35 minutes ago, One percent said:

No. They couldn’t afford me. xD

suprisingly smoggie has a very good M&S 

Boro is simple - you support one team, you eat one thing and women only have one profession.

MBC. Parmo. Prozzy.

Big MnS is a sign of all those higly paid public sector workers, 'fixing' poverty.

 

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1 hour ago, Rave said:

My wife worked in one for nearly 10 years, she was at Druckers when they bought them. She left in February. I always found it amazing that they sold enough coffee and cakes to pay the rent on a large unit in a big suburban shopping centre, and the equivalent of probably 8-10 full time staff (wife was part time), but apparently the store was profitable.

But I agree that it's most likely a case of private equity buys a smallish business, takes out a load of debt to massively expand it, and then floats it for profitzzzz . There's a Pat Val concession in Beaconsfield services, I have never seen a customer there as I walk past on the way to McDonalds.

Come to think of it, I've had similar- ended up working for Jessops when they bought Tecno, was there while they went for massive expansion and a float, left before they went bust. Next time the wife or I leave a company I'm shorting the shit out of it.

Why  surprise?

Margin on coffee and cake is pretty high.

Get enough mouths throug hthe door - profit.

Fuckup - misery...

Coffee and the like operate at high amrgins but low profits. i.e. they have a lot of fixed costs.

 

 

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