Insolvency specialists from Menzies have been appointed to secure a future for the London Welsh Rugby Football Club (RFC)
ATTEMPTS TO SECURE the future for the London Welsh Rugby Football Club (RFC) are being made today by insolvency specialists from Menzies.
The High Court will rule on a winding up petition issued by HMRC, which will determine the future of the club. The petition brought forward by HMRC related to unpaid bills totalling £250,000, among other financial pressures.
Insolvency specialists John Cullen and Bethan Evans from the firm will be providing the advice to reach a situation which will allow the appointed liquidators to dispose of the assets, a more “favourable” outcome than if taken by the courts.
Cullen, a partner at Menzies, said: “It is hoped by both the club and Menzies that the company will enter a voluntary liquidation rather than a compulsory liquidation.”
The voluntary winding up would allow more rational dealings with the club’s assets in a cost-efficient manner. The club, based in Richmond, has recently seen financial difficulty even though it has been active for over 130 years.
The effects of the High Court decision could be felt throughout the league. London Welsh have an upcoming fixture on December 24, which they will be unable to play, should the court rule in favour of HMRC.
John Cullen, continued: “Our hope is that the voluntary liquidation process secures a future for the club. This begins with ensuring that upcoming fixtures can be honoured, including the Christmas game later this month. If London Welsh are unable to play, knock-on effects could be felt throughout the entire league. The decision ultimately lies with the High Court and we wait to hear whether or not a voluntary liquidation will be possible.”