Mike Ashley’s Sports Direct makes offer to rescue collapsed Patisserie Valerie

Mike Ashley’s Sports Direct has made an offer to buy the collapsed café chain, Patisserie Valerie, which fell into administration last month.

Sports Direct confirmed in a statement late on Friday that it had made an offer to buy the company but did not divulge any further details.

Ashley, 54, is hoping to add to his expanding high street empire, having already purchased other struggling stores, House of Fraser, Evans Cycles and Agent Provocateur.

The Newcastle United owner tried to takeover HMV earlier this week but lost out to Sunrise Records owner, Doug Putman.

Administrator KPMG has already closed 70 Patisserie Valerie outlets as around 900 of the 3,000 staff were made redundant. KMPG decided to keep 121stores open in the hope of finding a buyer.

The administrator also said that it had received multiple offers to takeover the business.

Trouble hit Patisserie Valerie last October when "significant, and potentially fraudulent, accounting irregularities" were uncovered.

Its finance director Chris Marsh was arrested after being suspended by the café chain in the wake of the discovery.

Last month the company revealed it could not renew its bank loans and did not have enough money to continue trading.

Talks with HSBC and Barclays broke down and without an option to restructure the business it was forced into administration.

Ashley, 54, made his name growing Sports Direct into the UK’s biggest sports good retailer and has shares in Debenhams and French Connection as well as owning House of Fraser, Evans Cycles and Flannels outright.

He will now try to add Patisserie Valerie to his portfolio, which would also include subsidiaries like Druckers Vienna Patisserie, Philpotts, Baker & Spice and Flour Power City.