TAKEOVER IS GETTING CLOSER AT SOUTHEND
UNITED needed an urgent court order this week in order to pay players and meet urgent deadlines that threatened their existence.
Shrimpers fans are hopeful a takeover imminently after it was revealed that under-fire Blues chairman Ron Martin has held discussions with the group which includes Peter Taylor’s son-in-law Simon Jackson and Kristofer Tremaine from Kimura Capital, an investment and asset management company.
Integral Sports Management – who were co-founded by actor Ray Winstone – are also part of the bid and Winstone could get a place on the board if the offer is accepted.
But this week they had to be granted an order to unfreeze a bank account so player salaries could be paid by Wednesday or risk players walking away and the National League withdrawing the club’s membership.
A lawyer for the National League side told a specialist judge they would “simply cease to exist” if payments to playing staff and for the filing of overdue accounts were not made on Wednesday.
Judge Sebastian Prentis heard at an online hearing that players could “walk away” if they did not receive their salaries due at the end of this month, while the National League had said it would withdraw the club’s membership if accounts were not filed “by close of business”.
The insolvency and companies court hearing comes after HM Revenue & Customs (HMRC) issued a winding-up petition against the Shrimpers over a £275,000 tax debt.
Earlier this month, Southend – who dropped out of the Football League at the end of the 2020/21 season – were given more time to clear the debt as the owners look into the sale of the club.
Barrister Hilary Stonefrost, representing the loss-making side, told Wednesday’s hearing it needed a “validation order” to unfreeze a bank account and make payments.
She said this was “to ensure the business of the company can survive under its present ownership long enough for a sale of the company’s shares to new owners”.
“The salaries of the footballers and the footballing staff need to be paid today… and if they are not paid they can walk away,” she said, describing them as the company’s “only really valuable asset”.
Ms Stonefrost said: “The National League has said that if they did not file accounts before close of business today then they will withdraw their membership of the league.”
Last week it was reported talks had been held with the new group and it’s understood a deal could be close.
Jackson even uploaded a Southend club badge onto his Instagram page.
The club are the subject of a winding-up petition by HM Revenue and Customs over an outstanding tax bill of £275,000 were recently granted an extension to explore their sale.
Ms Stonefrost said club chairman RMartin, who observed the online hearing, had given an “undertaking” that sale proceeds would be used to pay HMRC and creditors.
The case will return to court on Monday.
Judge Prentis said £25,000 of the club’s current HMRC debt had been paid – with the petition due to be reconsidered on July 12.
The club opeated under a transfer embargo for much of the 2022-23 season but still only just missed out on a play-off place under boss Kevin Maher.