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		</div><p>Patisserie Valerie’s chairman has swooped in with a rescue loan package after a black hole in the company’s accounts led to its finance chief being arrested on suspicion of fraud.</p>
<p>Luke Johnson has pledged up to £20 million in new loans in order to keep the chain’s parent company Patisserie Holdings afloat after a wind-up order was issued against it by the taxman.</p>
<p>Mr Johnson, a serial entrepreneur, is the largest shareholder in Patisserie Holdings with a 37% stake.<br />
The company also plans to raise as much as £15 million through the issue of new shares.</p>
<p>Funds raised through the share placement will be used to pay back around half the money loaned by Mr Johnson, as well as to meet outstanding liabilities including the £1.14 million bill owed to HM Revenue &#038; Customs.</p>
<p>In a statement issued to the market on Friday afternoon, Patisserie Holdings said the loans would enable it to continue trading for the “forseeable future”.</p>
<p>It had been feared that the company could go into administration as soon as this week, with advisers at PwC thought to be on standby for a collapse.</p>
<p>Directors also confirmed on Friday that the group has net debt of approximately £9.8 million.<br />
Historical statements on the cash position of the company were misstated and subject to fraudulent activity and accounting irregularities, directors said.</p>
<p>The group’s finance director Chris Marsh, who was suspended from his role earlier this week, has been arrested on suspicion of fraud, but was later released. Hertfordshire Police said: “A 44-year-old man from St Albans has been arrested on suspicion of fraud by false representation.</p>
<p>“He has been released under investigation.”</p>
<p>The probe is being led by the Serious Fraud Office (SFO). The SFO said: “Following this morning’s Regulatory News Service announcement by Patisserie Holdings PLC, the SFO confirms that its director has opened a criminal investigation into an individual.</p>
<p>“We can give no further information or comment at this time.”</p>
<p>The arrest was followed by the closure of some shops on Friday. Landlords for at least two Patisserie Valerie locations in London – in Hammersmith and Edgeware Road – cancelled their lease agreements with the company over breach of contract.</p>
<p>It is understood that the company has failed to pay rents.<br />
Patisserie Holdings said on Wednesday that it has been notified of “significant, and potentially fraudulent, accounting irregularities and therefore a potential material mis-statement of the company’s accounts”.</p>
<p>This significantly affected the company’s cash position, with the firm saying it could lead to a “material change” in its overall financial position.</p>
<p>Mr Marsh was later suspended from his role and accountancy giant PwC drafted in to look through the company’s books.</p>
<p>To compound its troubles, Patisserie Holdings has also received a winding-up petition for its principal trading unit Stonebeach, with a hearing now scheduled for October 31.</p>
<p>It relates to £1.14 million owed to HMRC. Patisserie Holdings – which owns additional brands such as Druckers, Philpotts and Baker &#038; Spice – trades from more than 200 stores and also has a partnership with Sainsbury’s, with branded counters present in the supermarket.</p>
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