The financial crisis at former benefactor club Rushden and Diamonds FC has deepened. A major creditor has issued a winding-up petition following the imposition of a five point penalty by the Conference. Diamonds were given their punishment after being found guilty of misconduct over their returns as part of the league’s Financial Reporting Initiative.
The financial crisis at former benefactor club Rushden and Diamonds FC has deepened. A major creditor has issued a winding-up petition following the imposition of a five point penalty by the Conference. Diamonds were given their punishment after being found guilty of misconduct over their returns as part of the league’s Financial Reporting Initiative.
Fears have been expressed that the club could be forced into administration to protect themselves against action brought by companies like Cloverdale Catering whose petition will be heard at Northampton County Court on June 13th. Cloverdale claim to be owed at least £50,000, while the club still have a debt to pay to HM Revenue & Customs of about £80,000 before a registration embargo can be lifted.
Several other companies have issued statutory notices of their intent to start legal proceedings. Printing firm Queensway refused to deliver programmes for last week’s game against Kidderminster. Long-term fan Gill Wignall is also understood to be starting legal proceedings over the second part of a £110,000 loan she made to help pay wages.
The club is thought to be seeking a Company Voluntary Arrangement but that would still be regarded as an insolvency event and would incur a ten point deduction next season.