The Financial Times reported that the United Kingdom’s Sports Direct Plc has withdrawn its offer to acquire Patisserie Holdings Plc after only two days.
In a letter that was published on Sunday, Sports Direct wrote to KPMG, the administrators of troubled cafe chain Patisserie Valerie. The Financial Times said that the company complained that it lacked the information needed to continue bidding for the group.
Both KPMG and Sports Direct were not immediately available to issue comments regarding the matter.
The report said that the deputy chief financial officer for Sports Direct, Chris Wootton, wrote to the KPMG partner leading the administration process, David Costley-Wood, to say that it had made a “serious and substantial offer” in excess of 15 million pounds, only to be informed that it would need to raise that offer by as much as 2 million pound.
In the letter that was seen by the Financial Times, Wootton stated: “SD has not been allowed access to a data room, any financial information or meetings with management”.
It added: “SD has reluctantly decided to withdraw its offer for the businesses, as it is not able to match an offer of 18 million pounds plus without having access to any due diligence, financial information or management meetings.”
Sports Direct is owned by Mike Ashley, the British retail tycoon. Last Friday, it issued a statement which gave no details regarding its offer to acquire the owner of Patisserie Valerie, a cake specialist.
Recently, Ashley acquired stakes in, or assets from, various British retail businesses such as Debenhams Plc and Sofa.com, House of Fraser, Agent Provocateur, Evans Cycles and firms that have struggled to cope with that challenges that included the rise of online shopping and sluggish consumer spending.
Patisserie Valerie floated four years ago. Last October, it plunged into turmoil following the discovery of accounting irregularities that resulted in the suspension of its top management.
Patisserie Holdings operated approximately 200 outlets and employs about 2,500 people. It had a stock market value of nearly 500 million pounds before it ran into trouble.
It had hired KPMG to assess its options in a last-ditch attempt to save the 93-year-old firm.