Page 29 - Patisserie Valerie Teaching Note
P. 29
Mike Ashley
What was Mike Ashley's
game plan in
attempting to acquire
Patisserie Holdings
Group? Perhaps it was
as simple as buying a
company out of
administration in order
to "trim off the fat"?
Other high street acquisitions spanning sportswear and
luxury fashion to cycles have been subject to this
experience.
- Evans Cycle chain bought out of administration £8m
- House of Fraser bought out of administration £90m
Perhaps Ashley’s strategy was simply opportunistic, seeking
out well-known brands. In the case of Evans Cycles the sale
came with stock valued at £28m whilst House of Fraser, was
bought carrying stock at a heavily discounted price which
could then be sold for a handsome profit from.
Unfortunately, Patisserie Valerie for a future buyer, is a
difficult one to value because it does not have traditional
stock that can be piled into a lorry and sold on. In fact, it
carried about £8,000 of perishable cake stock.
