Administration remains a concern for Southend FC

Southend United FC avoided administration by the skin of their teeth yesterday after reaching a repayment deal with HM Revenue & Customs in the High Court.

MRC petitioned at the High Court recently for a winding-up order at Southend United and for the appointment of administrators over a £238,710 tax bill. Following the order from the tax office, the football club appeared in court and managed to reach a repayment deal.

The High Court ruled existing debts at the club had been settled and future payments would be made on time.

Chairman of Southend United, Ron Martin, said a deal had been made due to a partnership with Sainsbury's. The deal with Sainsbury's includes building a new superstore on the Roots Hall site and the club moving to another stadium.

Southend's problems are not over yet though - HMRC warned the club that they would be taken to court again if they failed to make future payments.

A spokesman for the tax office said, “HMRC doesn’t initiate insolvency action against football clubs - or any other business - lightly but we will not hesitate to do so when that is the right way to protect the country’s tax revenues and other creditors from those who trade whilst insolvent and run up debts that they simply cannot pay.”

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