Firm Kpmg: Death Spiral and Cafe Group

firm kpmg: Patisserie Valerie went into a death spiral after the discovery of a 40m black hole in its finances, which it blamed on potentially fraudulent accounting irregularities, according to The Guardian. Last month the cafe group's administrators, the advisory firm KPMG, closed 71 of its nearly 200 stores and concessions, but had remained hopeful that a buyer would be found for the remaining outlets. On Friday evening the Sports Direct boss confirmed in a brief statement to the stock exchange that the company had made an offer for the stricken cake group, which plunged into administration last month. Sports Direct is not the only business in contention to acquire Patisserie Valerie. The auction is understood to have attracted a mix of private equity and trade buyers. A number of parties are carrying out due diligence before submitting final-round bids. (news.financializer.com). As reported in the news.