The multi-millionaire chairman of Patisserie Valerie is pumping £20m of his own cash into the stricken cake and cafe chain to keep it in business after “fraudulent activity” was uncovered that left the business teetering on the brink. Details of the proposed emergency rescue plan came hours after it emerged that the finance director of Patisserie Holdings, which has over 200 cafes and nearly 3,000 staff, had been arrested at his home by police. On Friday afternoon, Patisserie Holdings Plc said it needed at least £20m in new cash to avoid calling in administrators. It revealed that historical statements about its finances “were mis-stated and subject to fraudulent activity and accounting irregularities”. The company said an initial investigation into its accounts showed that instead of having £28m in the bank, as it last reported, Patisserie Holdings is nearly £10m in debt. Mr Johnson, who invested in Patisserie Valerie in 2006, is a serial entrepreneur who is best known for taking control of Pizza Express in 1993 before selling out in 1999.
