Causeway Capital, an Irish-based equity fund, has bought out the Patisserie Valerie coffee-and-cake chain from British administrators, showing its faith in troubled UK retailing.

Celtic Linen returned to profit last year, after emerging from examinership with a net gain of €5.42m.

The new directors of Celtic Linen have stated they are confident that the business can return to profit following the firm’s exit from examinership.