The owner of crisis-hit Patisserie Valerie says it needs to raise at least £20m to avert financial collapse.

Patisserie Holdings made the announcement hours after it emerged its finance director Chris Marsh, who was suspended on Wednesday as the firm investigated “potentially fraudulent accounting irregularities”, had been arrested.

The company’s updated statement said it was taking two pieces of action to shore up its finances.

It said an issue of new shares hoped to raise approximately £15m but, because that process would take time to complete, its chairman and largest shareholder would provide a £10m bridging loan.

Patisserie Holdings said Luke Johnson was also close to agreeing a three-year loan facility of £10m to provide it with the minimum £20m needed immediately to continue trading.

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