If your unfamiliar with Patisserie Valerie, then right off the bat, you should know that they are a chain of cafés that specializes in making hand-made cakes, and they operate in the United King-dom. But, pastries aren’t the main issue here, when the grander matter at hand centers on the fact that Patisserie Valerie narrowly avoids liquidation, which is a serious matter to take into account. That’s right, according to an article in the Guardian, Patisserie Valerie had admitted to needing an injection of capital. This came as a result of the pastry chain having begun suspending its own shares. Because of this occurrence, the company, which is valued at about £450m, currently around $578m, is now uncertain as to whether or not it is even capable of paying any of the three thousand people it has employed, which is rather tragic.
It was also revealed that HMRC (HM Revenue and Customs) issued a wind-up order, which came as the result of an unpaid one million pound tax bill to Patisserie Valerie. Also on October 11th, it was revealed by the board that the company was acknowledging that it certainly needed new funds even though no specific number has been stated, in order to continue in its trading process, avoiding the process of winding up a company in the UK.
All of what’s been happening to Patisserie Valerie is really no surprise, given that there has been a differentiation between the companies reported financial status, compared to what should’ve actually been reported. But nonetheless, Patisserie Valerie has come out and said that it has been assessing the options it has available at its disposal. They most certainly want to keep the business in a state where the trading process can continue and even update itself with regards to the market as time progresses. However, it seems as though based on the recent track records of business managed by Patisserie Valerie, it doesn’t seem like that will go very well either.
Because of this rather seemingly irresponsible means of business handling, there wouldn’t be much of a surprise if any of the other restaurants under Luke Johnson, who is Patisserie Valerie’s chairman, were to follow on the same road as the ninety-two year company has, despite the suc-cess it has flourished in over the past century since it’s inception back in the year 1926. But then again, that’s what happens when you are caught red-handed, and as a result of covering up messy tracks, you get handed with more crippling penalties that only serve to further illustrate the means of which you mismanaged the affair.
In conclusion, you don’t have to be a business expert to understand how a business operates be-cause at the end of the day, the key thing to take into account, is the matter of how information is exchanged and properly organized. As stated before, because Patisserie Valerie reported false financial information, while at the same time owing a lot of money, shows just how much it really set itself up for a road that would very much cost it the empire it had risen to. Ninety-two years and a value that exceeds over five hundred million dollars is indeed something to accomplish.
The rumors of how Patisserie Valerie could go out of business for such irresponsible business de-cisions essentially works as a lesson for any business or business owners out there that if you plan to stay at the top, then you have to earn it by being both efficient and responsible in the way you manage your affairs. For more information on Patisserie Valerie as well as cases of a similar na-ture, you can look at the links down below to have a better understanding.