The club’s holding company, Watford Leisure plc, needs to raise at least £9.5m to keep afloat and has blamed its financial predicament on the demise of ITV digital and ‘the knock-on effects this has had on the transfer market’.
Other problems identified were the inability to secure an internet deal with the Football League and ‘significantly reduced match attendance in the season to date’.
In addition to asking the majority of professional players and more highly paid staff to take a 12% pay cut to ease cash flow problems, the club has also had verbal commitments from existing directors and current shareholders to purchase shares in the company from future fundraising, aimed at raising £6.3m.
The club said it would repay the players’ wages if the £9.5m was raised – a further £3.2m is needed from supporters and shareholders.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children