Patisserie Valerie was rescued by an Irish private equity firm at the last minute.

The 120 remaining branches of the Cake chain are said to be kept open by management as a result of the deal reported today in the Daily Telegraph.

Causeway Capital's deal with Patisserie Valerie early in the morning comes after Sports Direct's owner Mike Ashley withdrew a surprise food grocer offer earlier in the week.

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Although around 900 jobs were cut in the first closing of the café chain at the end of last month, the Patisserie Valerie still employs about 3,000 people whose positions in the company could be rescued through the acquisition of Causeway Capital.

Causeway Capital currently owns a number of cafes in its portfolio, including BB Bakers & Baristas, which controls 65 stores in the UK and Ireland.

Such a takeover took place one month after the collapse of the Valerie patisserie following an accounting scandal that left the chain without sufficient funds to pay off its debts.