Patisserie Holdings sells Baker & Spice for £2.5m

Patisserie Holdings - the parent company of Patisserie Valerie - has sold its deli and bakery chain, Baker & Spice, to the Department of Coffee & Social Affairs for £2.5m.

The news comes a day after it emerged that the company's Patisserie Valerie brand had been bought out of administration by Irish private equity firm Causeway Capital Partners, while Philpotts was sold to retail and distribution group A.F. Blakemore. The total consideration for both sales was £13m.

Patisserie said the remaining assets, which were not included in the three separate transactions, will be realised during the administrations.

The Serious Fraud Office is currently carrying out a criminal investigation into Patisserie Valerie, after finance director Chris Marsh was arrested and released on bail last year. In addition, former Patisserie Valerie auditors Grant Thornton are under investigation by the Financial Reporting Council.