THE Newport and Cwmbran branches of cake chain Patisserie Valerie are to close, it has been confirmed.

The firm announced on Tuesday that it was going into administration, and the two Gwent branches are among 71across the UK that administrators KPMG have now confirmed will shut.

The Newport branch is a concession located in the Debenhams store in Friars Walk, and the Cwmbran branch is on The Mall.

Some 920 jobs are believed to be going UK-wide as a result of the 71 closures, which include concessions in Debenhams and Next stores, and a handful of branches at motorway services.

The chain's remaining 122 branches will remain open, at least for now.

The firm announced on Tuesday that discussions with its lenders HSBC and Barclays to extend a standstill agreement on its debts had come to nothing, leaving it with no option but to go into administration.

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

Its Tuesday statement read: “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.”

KPMG was hired by the firm last week to review all options following an accounting scandal that pushed it close to collapse last year.