Ashley puts Patisserie Valerie on the menu

MIKE ASHLEY’S Sports Direct has confirmed it has offered to buy collapsed cake shop Patisserie Valerie out of administration, as the retail billionaire looks to swoop in on another distressed business.

Sports Direct announced that it had made a bid for the “trade and assets of Patisserie Holdings plc and its companies out of administration”.

Administrators at KPMG said earlier this week they were “encouraged by the scope of offers received from trade and finance buyers for all and for parts of the business”.

It is understood Mr Ashley’s interest was lodged late yesterday. However, his appetite for acquisitions means the approach has been widely expected.

Azzurri, the owner of Italian chains Zizzi, Ask and Coco di Mama, is said to be eyeing some Patisserie Valerie leases. Coffee chain Costa and Leon restaurants are also weighing bids for some of the failed businesses’ best sites.

Mr Ashley has taken advantage of the retail downturn to hoover up distressed retailers including House of Fraser, Evans Cycles and Sofa.com at bargain prices. Last week he was pipped to the post in his bid for HMV by Canadian music mogul Doug Putman.

Mr Ashley is also in conversations with Debenhams’ management about the struggling department store’s refinancing plan after ousting its chairman in December and having his offer to loan £40m to the business in return for a 10pc stake rejected.

Patisserie Valerie went into administration last month after a £40m black hole was found in its accounts. More than 900 jobs were lost immediately when 71 loss-making shops were shut. A further 2,000 positions hang in the balance as a buyer for the remaining 122 shops is sought.

KPMG’S report into the collapse reveals the cake chain was heading for annual losses of £2.6m, compared to the £12m of earnings it had told the City to expect. Auditors Grant Thornton told MPS it was not their role to look for fraud.