SOUTHEND UNITED face the very real prospect of going out of business this month.
The National League outfit could see their prospective takeover tank after the buyers expressed “urgent” concerns over their takeover attempt.
GettySouthend United could go out of business this month[/caption]
GettyFans have long protested the owner Ron Martin[/caption]
A consortium, known as the Custodians of Southend United (COSU), launched a takeover of the club at the back end of 2023 after multiple fan protests against current owner Ron Martin.
But the consortium, led by Australian businessman Justin Rees, has now released a statement saying that a property deal included in the takeover bid has collapsed.
The issue arose from plans to renovate current stadium Roots Hall.
COSU were hoping to stay in the stadium, while current owner Martin was looking to move to a new location at Fossetts Farm.
The consortium has claimed that the collapse of the property deal 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.
A statement from COSU detailed that the contracts will now not be signed before a winding-up petition hearing at the high court on June 26.
It read: “Signing the amended property contract remains the last condition for the completion of the club’s sale and COSU cannot see a path forward without it.
“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.
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Australian businessman Justin Rees is leading the consortium who are trying to take over the clubRex
“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.”
Southend have now had over 18 winding-up petitions in the last 14 years.
A winding-up petition is a legal tool that creditors can use to fold a company that owes them money, meaning Southend’s debt could see the club go out of business at the hearing.
Supporters have long been against Martin’s ownership with Shrimpers protesting earlier this season by throwing tennis balls on the pitch during their clash with Eastleigh following a 10-point deduction.
COSU has now made three demands to continue funding the club and satisfy creditors ahead of this month’s court date.
1. A revised set of terms for the property contract that all parties are committed to closing.
2. An updated scope and realistic timeline for the remaining council due diligence work.
3. An agreement with the Martins to provide security for the further funds COSU will need to inject prior to the takeover.
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The consortium added that they “see no reason” why those demands can’t be met within a week if all parties act appropriately.
The dire situation has worried Southend fans further and prompted another protest.
Southend Fan Protest Group have revealed they will be making their voices heard on Saturday morning.
A statement read: “In light of recent public and private updates from both the council and COSU we have been in continual discourse with the supporters groups re fan action to save the club.
“It is our view that now is the opportune moment to strike whilst the iron is hot.
“It is evident that whilst council timelines have been infamously unrealistic, we are only in this position of due diligence as a consequent of the Martins attempting to renegotiate a better deal for themselves.
“We say ENOUGH.”
They announced a protest would be coming at 9am tomorrow before adding: “Further protests over the coming weeks, in Benfleet, Camden and Leigh will be announced.
“Protests will not cease until these demands have been met regardless of any attempts at pressure or persuasion from any outside stakeholder.”
Southend, who have a perfect record against Manchester United – winning their only clash against them, finished ninth in the National League last season.
Google EarthPlans to build housing on Roots Hall Stadium have scuppered the takeover[/caption]
AlamyFans have planned new protests following the news[/caption] Creator – [#item_custom_dc:creator]
