Jobs are at risk at three cafes in Oxford after the Patisserie Valerie chain 'went into administration'.

In October Patisserie Valerie was saved from collapse after entrepreneur Luke Johnson, who owns 37 per cent of the company, provided £20m in loans to the struggling chain.

This came as ‘a relief’ to staff at the cafés in High Street, at Debenhams in Magdalen Street, and in Woodstock Road.

READ AGAIN: Oxford's three Patisserie Valerie branches declared 'safe'

But it is now understood that the chain has collapsed into administration, putting nearly 3,000 jobs at risk, after it failed to secure a financial lifeline from its banks.

The cake and cafe business has been in crisis since October when a £40m black hole in its finances was blamed on 'potentially fraudulent' accounting irregularities.

Last week, the business, which operates 200 cafes, admitted its finances were in even worse shape than it had previously thought.

Oxford Mail:

In a statement to the stock market, it said that as a 'direct result of the significant fraud' it had been unable to renew its bank facilities and 'therefore regrettably the business does not have sufficient funding to meet its liabilities'.

In September 2017 the chain opened its third restaurant in the city, in Woodstock Road, at the site of the former Maison Blanc café and it is now trading as a Baker & Spice outlet, also owned by the company.

Oxford Mail:

Patisserie Valerie is thought to have attracted interest from at least three private equity firms, and this could lead to a takeover bid.

Mr Johnson has also been involved with Oxford Stadium through Risk Capital Partners, a firm he co-founded.