BusinessBusiness RecoverySouthend United stave off administration in Sainsbury’s deal

Southend United stave off administration in Sainsbury's deal

Football club Southend United avoid administration again, following a deal with Sainsbury's

Southend United FC avoided administration in the High Court yesterday after
it reached a repayment deal with HM Revenue & Customs following a winding up
petition from the tax office.

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

HMRC petitioned at the High Court on 8 July for a winding up order at
Southend United, and for the appointment of administrators over a £238,710 tax
bill.

Chairman for Southend United Ron Martin said a deal had been made due to a
partnership with
Sainsbury’s, the
BBC
reports.

HMRC warned Southend United they would take the club to court again if the
club failed to make future payments.

A spokesman for the tax office said ensuring tax is paid should be at the ”
centre of football’s business strategy” as it should with all businesses.

“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,” the
spokesmand said.

The deal with Sainsbury’s includes building a new store on the Roots Hall
site with the club moving to another stadium.

Chairman Martin said all costs at the club for the next 12 months had been ”
underwritten”.

Further reading:

HMRC
calls for administration at Southend United

HMRC
tackles Premier League football creditor rule

Football
League agrees Stockport sale out of administration

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