Millwall Faces Closure Threat - 04/03/2007

Millwall Football Club has said that it may be forced to close unless shareholders approve a £5 million rescue loan. Chestnut Hill, a boutique US finance firm, has agreed to lend the Bermondsey club up to £5 million, convertible into shares that ultimately give it a stake of more than 50 per cent in the club. Millwall's finances were hit by relegation from the Championship last year. First-half losses went from £100,000 to £2.8m as revenues fell 15 per cent. Net debt stood at £2.5m. New chairman Heather Rabbats urged shareholders to support the deal and warned that 'If the proposals are not approved ... the company will not be able to raise alternative funding in the time available and may have to consider ceasing to trade.' Mrs Rabbats said that the club needed the loan for continuing operations as well as to start a development project, including housing, hotels and shops, on derelict ground around its ground.