Patisserie Valerie has gone into administration, after it was unable to extend its bank facilities amid allegations of fraud.

The bakery chain, which has a branch in Cheltenham, said discussions with its lenders HSBC and Barclays had come to nothing, leaving it with no option but to appoint KPMG as administrator, as reported by Sky.

The company confirmed it was unable to renew its bank facilities as a direct result of the fraud  last year.

Luke Johnson, Patisserie Valerie chairman, has given the company a £3m interest-free loan to make sure that January wages are paid to all staff.

KPMG said the company would continue to trade from 121 out of 200 stores, but around 70 cafes and concessions will close in the next few days, resulting in a significant number of redundancies. Around 3000 jobs are at risk across the company.

The administrator said it will be seeking a buyer for the business and it is hopeful of a good level of interest.