The firm said discussions with its lenders HSBC and Barclays to extend a standstill agreement had come to nothing, leaving it with no option but to appoint KPMG as administrator.

The move puts nearly 3,000 staff at risk of losing their jobs, who had thought the business was worth almost £500million.

Its parent company Patisserie Holdings has been grappling with the fallout of an accounting fraud.

It said: "Patisserie Holdings plc announces today that, as a direct result of the significant fraud referred to in previous announcements, it has been unable to renew its bank facilities, and therefore regrettably the business does not have sufficient funding to meet its liabilities as they fall due."

Chairman Luke Johnson has extended an unsecured, interest-free loan to help ensure that the January wages are paid to all staff working in the ongoing business, the company said.

The loan will also assist the administrators in trading as many profitable stores as possible while a sale process is undertaken.

The future of the company was thrown into doubt in October after it uncovered fraudulent activity around its financial accounts and was served a wind-up order by the taxman over £1.14 million owed to HM Revenue and Customs.

Paul May, the former boss of the beleaguered cake chain, was also forced to step down as a result of the scandal.           

The company said Nick Perrin, formerly finance head at veterinary firm CVS, took up the role while the board looked for a permanent replacement for predecessor Chris Marsh.

Marsh was arrested on suspicion of fraud following the discovery of a black hole in Patisserie Valerie’s accounts in October, but was later released.

As well as about 200 Patisserie Valerie stores, it has 60 counters in Sainsbury’s and owns Druckers and Flour Power City Bakery.

The locations at risk

Currently all shops are still trading while the administrators look for a buyer for the business.

Administrators KPMG have said 70 stores will close as a result – with locations released in the next 24 hours.

These are the locations at risk:

Aberdeen

Ashford – McArthur Glen

Baldock

Basildon (Debenhams)

Basingstoke

Bath

Beaconsfield

Belfast

Belfast Castle Lane

Belfast Forestside

Beverley (Debenhams)

Bournemouth

Bracknell

Bradford

Brent Cross Fenwick

Brighton

Bromley

Brunswick Centre (London)

Burton Upon Trent

Bury

Bury St Edmunds

Cabot Circus (Bristol)

Camberley

Cambridge

Cambridge Extra MSA

Cambridge Fitzroy St

Canterbury

Cardiff

Cardiff Queen Street

Carlisle

Charing Cross Rd (London)

Chelmsford (Debenhams)

Cheltenham – PV

Cheltenham (inside Next)

Cheshire Oaks

Chester

Chesterfield

Chichester

Chippenham

Chiswick

Clapham

Clifton

Colchester

Covent Garden (Bedford St)

Cribbs

Cwmbran

Deansgate (Manchester)

Derby

Doncaster

Dublin Blanchardstown (Debenhams)

Dublin Henry St (Debenhams)

Dundee

Durham

Ealing

Eastbourne

Edgware Road (London)

Edinburgh – Fort Kinnaird

Edinburgh (Debenhams)

Edinburgh George IV Bridge

Edinburgh North Bridge

Edinburgh Rose Street

Euston Station

Exeter

Glasgow (Debenhams)

Glasgow Central Station

Glasgow Fort

Glasgow Royal Exchange

Glasgow Silverburn

Glasgow West Nile

Gloucester

Guildford

Hammersmith

Henley On Thames

Hereford (Debenhams)

High Wycombe

Holland Park (London)

Hounslow (Next)

Hove

Huddersfield

Ipswich

Kensington

Kingston

Knightsbridge

Lakeside Essex

Lancaster

Leamington Spa

Leeds – Albion St

Leeds St Pauls

Leeds White Rose

Leicester

Lincoln

Liverpool

Liverpool (Debenhams)

London Oxford Street (Debenhams)

Long Acre Covent Garden (London)

Maidstone

Manchester Barton (Inside Next)

Manchester Fort (Inside Next)

Manchester Oxford Street

Marble Arch

Marshall Street (London)

Marylebone (London)

Marylebone Station

Middlesbrough (Debenhams)

Milton Keynes

Newcastle

Newport (Debenhams)

Norwich

Nottingham Royal Exchange

Oxford

Oxford (Debenhams)

Peterborough

Peterborough Services A1M J17

Piccadilly (London)

Portsmouth

Preston

Queensway

Reading

Redditch (Debenhams)

Resorts World Birmingham (NEC)

Richmond

Romford

Rushden Lakes

Salisbury

Sheffield

Shrewsbury

Soho (Old Compton St)

Southend on Sea

Southport

Spitalfields (London)

St Pancras Station- Circle Area

Stevenage (Debenhams)

Stratford Upon Avon

Sutton Coldfield

Sutton-Surrey

Swindon

Telford (Debenhams)

Torrington

Tunbridge Wells

Twickenham

Victoria – London

Victoria Station

Wandsworth (Debenhams)

Warrington

White City Westfield (Debenhams)

Wigan (Debenhams)

Wimbledon

Winchester

Windsor

Woking

Wolverhampton

Worcester

York

York Coppergate

York McArthur Glen

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