The parent company of cafe firm Patisserie Valerie has announced that it will be forced to stop trading without an "immediate" cash injection.

The chain, which has a branch in Carlisle, announced on Wednesday that it was facing a fight for survival after receiving a winding up petition over unpaid taxes and unearthing potentially fraudulent accounting irregularities.

In a stock market update, parent firm Patisserie Holdings said it has received a winding up petition for its principal trading unit Stonebeach.

It relates to £1.14 million owed to HMRC and was filed at the High Court of Justice, Companies Court.

The winding up hearing is scheduled for October 31 and Patisserie Holdings said it is in communication with HMRC.

Earlier on Wednesday, its shares were suspended following the discovery of an accounting blackhole.

Patisserie Holdings said it has been notified of “significant, and potentially fraudulent, accounting irregularities and therefore a potential material mis-statement of the company’s accounts”.

This has significantly affected the company’s cash position and may lead to a “material change” in its overall financial position.

Patisserie asked that its shares be suspended from trading on the London Stock Exchange’s junior AIM market while it carries out a full investigation into its true financial position.

In addition, finance chief Chris Marsh has been suspended from his role and PwC has been drafted in to look through the company’s books.