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Southend takeover and future in doubt after delays
Image source, Getty Images
- Author, Andrew Aloia
- Role, 大象传媒 Sport
Southend United could go out of business later this month after prospective buyers expressed "urgent" concerns about their protracted takeover attempts.
A winding-up petition, which was adjourned for the final time in May, is set to be heard in the High Court on 26 June.
The consortium, led by Australian businessman Justin Rees, says a property element of the contract which has caused the takeover of the National League side to stall now "seems certain" not to be signed ahead of the court date.
Contracts were exchanged with long-time owner Ron Martin in December, but the takeover has still not been completed.
The consortium claims it is down to the local council "consistently missing" due diligence timelines over hundreds of homes which were originally planned to be built on Roots Hall now being moved to Fossetts Farm.
Martin had planned on building a new stadium at Fossetts Farm, while the prospective buyers want to renovate Roots Hall.
The consortium, which calls itself Custodians of Southend United (COSU), issued a statement to say they feel the property deal has now collapsed.
"Signing the amended property contract remains the last condition for the completion of the club鈥檚 sale and COSU cannot see a path forward without it," the consortium said.
"Last Friday, it became apparent that the council did not wish to progress with the property deal along the terms previously agreed with the Martins. As a result, there has been a round of renegotiation this week with both sides assuring us they intend to find a compromise.
"COSU is not directly involved in these negotiations though we continue to stress the urgency of the situation to all.
"Even if a compromise is reached, it seems certain that the revised property contract will not be signed prior to the 26 June winding up hearing for the club in the High Court."
Newly-elected leader of Southend-on-Sea City Council Daniel Cowan, who has been in the position since 21 May, said he welcomed the consortium鈥檚 critical statement and thanked them 鈥渇or their candour and patience鈥.
He was also critical of the council鈥檚 previous administration and added elements of the proposal as previously negotiated and assurances given "fell outside of normal practice and were simply not achievable".
The consortium has now made three demands if they are to continue to fund the club, their attempt to complete the takeover and to satisfy creditors ahead of the court date.
- A revised set of terms for the property contract that all parties are committed to closing.
- An updated scope and realistic timeline for the remaining council due diligence work.
- An agreement with the Martins to provide security for the further funds COSU will need to inject prior to the takeover.
Council leader Cowan said the 鈥渁dministration remains committed to meeting the requirements鈥 set out by the prospective buyers.
With those demands, the consortium say they still want to "hit the ground running" if a the takeover can be done.
"COSU wants to assure Southend fans that we are doing as much as possible to prepare for the new season in parallel so that if the deal does complete," they added.