THE Druckers cafe in Poole's Dolphin Centre has closed – but Patisserie Valerie in Bournemouth has escaped the axe for now.

Both are part of the Patisserie Valerie business which collapsed into administration on Tuesday.

Administrator KPMG has said it will close 70 cafes and concessions over the next few days, leading to a “significant number” of redundancies.

Druckers Patisserie Valerie in the Mall at the Dolphin Centre has already closed.

John Grinnell, centre manager at the Dolphin Shopping Centre, said: “We are sad to hear the news that Druckers Vienna Patisserie is going into administration. During this time, we will do everything we can to support the staff affected.”

More than 3,000 jobs are at risk after discussions with the cafe’s lenders HSBC and Barclays failed.

KPMG said it would continue to trade 121 out of 200 stores, but 70 cafes and concessions would close over the next few days, resulting in a “significant number” of redundancies.

It is understood that the Bournemouth branch, in Post Office Road, has been trading well KPMG said the brand was popular with customers.

Blair Nimmo, head of restructuring at KPMG and joint administrator, added: "Our intention is to continue trading across the profitable stores, as collectively the brands have a strong presence on the high street and have proven very popular with consumers.

"At the same time, we will be seeking a buyer for the business and are hopeful of a good level of interest.

"Unfortunately, however, we have had to take the difficult decision to close 70 stores resulting in a significant number of redundancies.

"We will be working with those affected employees, providing all support and assistance they need."

The cake firm's parent company Patisserie Holdings has been grappling with the fallout of an accounting fraud since October.

It said on Tuesday evening that the extent of fraud meant it was unable to renew its bank loans and did not have sufficient funding to continue trading.

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 added.

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

Last week, Patisserie revealed KPMG had been hired to carry out a review of all options following the accounting scandal which pushed it close to collapse last year.

It also unveiled the "devastating" extent of irregularities in its books, which included thousands of false entries into the company's ledgers.

The firm said an initial investigation pointed to cashflow and profitability being worse than previously thought when the problem was first discovered in October.