Bradford edge closer to administration
The business turnaround and insolvency firm The P&A Partnership, have confirmed that they have now completed their review of Bradford Bulls‘ finances at the request of the club’s recently reconstituted board of directors, following the resignations of Peter Hood and Andrew Bennett last month. Prior to resigning the former directors had stated that £1m was needed to save the club and they went on to raise a figure approaching £500,000 of this sum following a plea for donations from the club’s supporters.
Brendan Guilfoyle of The P&A Partnership said “The club’s new directors asked my firm to carry out a review of the club’s finances and the reality is that this is a loss making business. Despite the magnificent effort of supporters the club still requires more than £1m to complete the season.”
HMRC is threatening to wind up Bradford Bulls Holdings Ltd and under these circumstances the directors have had no alternative but to file today, 12 June, a notice of intention to appoint administrators to protect the club. This proactive decision gives the club a breathing space to find partners to invest in the club. It doesn’t mean that the club will necessarily enter administration. The club has two weeks to find additional funds – this may mean a number of investors coming together to save the club.
Bulls’ director Stephen Coulby said, “Unfortunately, developments last Friday and pressure from HMRC has meant that we have had to seek protection whilst talks with investors continue now that we have ascertained the full extent of the club’s debts. Had the actual position been as we understood it to be, that is to say a requirement for £1m half of which had already been raised through the sterling efforts of supporters, it would not have been a problem. Regrettably, other matters have recently been brought to our attention which have widened the funding gap, but we are still intent on avoiding administration and its consequences if at all possible.”
“Bradford Bulls remains a terrific club with a marvellous history, an iconic brand and it has a great deal to offer any partner wanting real value for his investment.”
Source: http://www.creditman.biz/uk/members/news-view.asp?newsviewID=15986&id=1&mylocation=News&chksrc=NNow4251