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Football club faces administration

Date Added: 06/09/2013  

The future of a Southern Football League Premier Division is at risk as the team could go into administration or liquidation in the coming weeks.

Hinckley United may be forced to go under as a result of legal action that has been launched by its former chairman, Kevin Downes, who states that it owes him more than £187,000.

According to a report by the Leicester Mercury, a hearing on September 20th will be held in order to decide what happens next and the future of the club may be secured on that date.

Should the ruling be that the club has to pay off its debts to Mr Downes, it may be forced into liquidation, although the judge may rule that the club does not have to settle with its former chairman.

Mr Downes said: "If they can't pay me, then either they just hope they can win in court, or they go into administration."

The club was recently relegated from the Conference North League and now plays in the Calor Southern League's Premier Division and this is not the first time in recent years that it has been facing a winding up order.

After a tax bill of £23,479 went unpaid in June 2011, it was faced with closing down, while a £190,000 tax bill the previous year had also caused financial problems for the team.

"I love the club and I had 15 great years there. But it's out of my hands now and it's in the hands of the court," said Mr Downes, who claimed that he is not trying to get the club back and would instead prefer ownership to move to a supporters' trust.

Earlier in the month, general manager at rugby club Bradford Bulls Ryan Whitcut was forced to deny that the team was in financial danger. He explained that while a winding up order had been served to the club, this was as a result of an oversight and the matter has now been dealt with.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Julie Cutts

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