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Sports Direct made an offer for collapsed cake chain Patisserie Valerie, but then withdrew it

Mike Ashley's group offered £15mln to buy the business out of administration but was told by administrator KPMG it would need to offer up to £2mln more than that
Cakes
Patisserie Valerie appointed administrators in January following the revelation of an £40mln accounting blackhole at the group

Sports Direct International PLC (LON:SPD) announced after the close on Friday that it had made an offer to acquire the business of collapsed cake chain Patisserie Holdings, however, weekend press reports said that offer has now been withdrawn.

The FTSE 250-listed group, owned by retail billionaire Mike Ashley offered £15mln to buy the business but was told by administrator KPMG it would need to offer up to £2mln more, according to a report in the Financial Times

READ: Following its collapse, who could be looking for a slice of Patisserie Valerie?

Patisserie Valerie appointed administrators in January following the revelation of a £40mln accounting blackhole at the group, and KPMG has since closed 70 outlets, but kept 121 open in the hope of selling them.

Ashley is thought to be facing several competing bids for Patisserie Valerie, including one from Costa, the coffee chain bought from Whitbread plc by Coca-Cola Inc last year.

The retail tycoon, the owner of Premier League football club Newcastle United, has a reputation for buying struggling retail groups and bought both department stores chain House of Fraser and cycle shop Evans out of administration last year.

Sports Direct also has substantial shareholdings in Debenhams, French Connection and Game Digital, and last week emerged as the front runner to buy Sofa.com.

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