Reading face second winding-up petition of the year and ‘prospect of administration’

Reading have been handed their second winding-up petition of the year and in all, the fifth time Reading have been issued with it.

The latest was served with by His Majesty’s Revenue & Customs over unpaid taxes, becoming the second time in four months the club has been threatened with liquidation by creditors due to unresolved debts, and the fourth winding-up petition under the stewardship of Dai Yongge.

This petition can be dealt with when a debt is paid or by arrangement of a payment plan with the creditor HMRC, as concerns loom over the club’s future.

Reading, who currently sit bottom of League One, have had plenty of problems to deal with, both on and off the pitch.

They’ve suffered points deductions, relegation from the Championship after 10 years in the second tier, a return to the third tier in 21 years, regularly struggled to pay wages on time, and have just six points from 14 games played.

The Royals’ Chinese owner Dai Yongge hasn’t resolved cashflow problems and said back in September that he was open to “credible offers of interest” to buy the financially troubled club, with there being issues regarding getting money out of China and into the UK.

Reading FC hit with second winding-up petition of the season as Dai Yongge and Sheffield Wednesday’s Delphon Chansiri battle it out with ‘Hold My Beer’ moments as they try to win the coveted ‘Most crap EFL owner’ trophy https://t.co/TX3cGSoSml

— Kieran Maguire (@KieranMaguire) October 31, 2023

New winding-up petition on the court and tribunals page #readingfc pic.twitter.com/MlCDFZ6z8t

— James Earnshaw (@james_e1871) October 31, 2023

According to Reading Chronicle, Reading, who are up for sale and having talks with three potential new owners, including Mike Ashley, missed the due date for the last two bills to HMRC.

It was in the summer that the club had been served with a winding-up petition, only for the court case to be cleared with the balance was cleared just as the League One campaign got underway.

This news had left their staff worried, but on Tuesday (31st October), as confirmed by journalist Ji-Min Lee: “Reading FC players and staff have been informed that October salaries have been processed and payments will subsequently leave the club’s account.”

Meanwhile, Reading’s supporters are hoping to meet with EFL as they continue to push for change in ownership.

Supporters Trust At Reading (STAR) want to hold a discussion with the league organisation over the club’s problems, with Sarah Turner, a member of STAR and organiser Sell Before Dai, saying as per GetReading: “They haven’t agreed a day yet, but we’re expecting it to be Friday. We’re grateful that they are willing to listen to fan’s concerns. We just want them to listen to us and give us some kind of guarantee they will do their job properly with our next owner.”

Sarah adds that if Mike Ashley did go on to become the new Reading owner, fans expect a meeting, saying: “I think it would be us saying: ‘let’s meet and communicate what you can offer us as a community, will you listen to fans. We need that feeling that we can get the club back on the right track. Owners need to understand that they come and go. We’re still here and we live with the mess they leave behind.

“We have had no reaction from the club at all. They cannot have failed to see the strength of feeling. It was a really clear message from fans. The political speeches were incredible.”

Bracknell MP James Sunderland and Reading East MP Matt Rodda, who participated in the fans protest ahead of the game against Portsmouth, said: “I was honoured to join friends and thousands of fellow Reading FC fans in a protest march to save our club. We sent a clear message that we want new owners to manage Reading FC properly.

“Today’s march to the SCL Stadium was a great success. Reading fans have sent a message to Dai Yongge and the EFL – Reading Football Club needs a new, responsible owner and we need a much bigger change in the regulation of club owners in the UK.”

Meanwhile, Lyall Thomas reports: “Reading are facing increasingly likely prospect of administration after the latest winding-up order served by HMRC on Monday. Revised bid in from Genevra acc. @ALANMYERSMEDIA but Yongge’s price thought to remain high and admin would suit majority of other interested parties.

“As we reported at the weekend, reps of Ashley met with senior reps of the club – hence the choppers in the car park. There is some initial interest. We’re told #Readingfc directors unlikely to put club into admin themselves but might end up being done for them by HMRC.”

#Readingfc facing increasingly likely prospect of administration after latest winding-up order served by HMRC on Monday. Revised bid in from Genevra acc. @ALANMYERSMEDIA but Yongge’s price thought to remain high and admin. would suit majority of other interested parties. #Royals pic.twitter.com/sBYHNKSbt9

— Lyall Thomas (@SkySportsLyall) October 31, 2023

This is how fans are reacting as Reading face a second winding-up petition of the year and the ‘prospect of administration’…

@_rfcmo: I know that Mike Ashley would love a cheap deal if we went into administration, but surely admin opens us up to a lot more interested parties which would create more competition for Ashley to have to beat? #Readingfc

@clarks1481: Administration looming brilliant gets better and better really

@unitedredevil78: So sad to see this nowadays especially with the amount of cash floating around in football ⚽️ Maybe someone can come in and save them and other clubs with similar plights ..

@Fanscapes1: What’s happening at @ReadingFC is dreadful

@HammettStuart: Really is time that those who allow these people to buy clubs should be named and shamed, whatever system they have isn’t working and never has

@danoftheroyals: Literally every 2 weeks we enter a new low. There is no silver lining at this club, it’s constant cycle of stomach-churning lows

@mrdjharding: The EFL need to step in. These owners are jokes. Put the clubs into admin and let them go to the highest bidder with the best credentials and don’t punish the clubs going forward. EFL need to take responsibility for passing their ownership tests

@aaron_challoner: Yet another club falling foul of the many financial issues lying within the accounts and once again the fans are the ones who suffer the most 💔 How many more must suffer before rules are stricter and situations don’t come to this?

@trebor_blue: Expected but not good news for concerned Reading fans, let’s hope the wages are all paid today last thing we need is more points deducted. 🤞The change of ownership happens in November

@dinghugo6: Admin looming. class

@Bazilstush: What a bloody mess this all is. How do the likes of Yongge get anywhere near football ownership☹️

@scottymac80: Incoming administration and 15 point deduction. Season over. Absolutely criminal!!

@SuffolkRoyal: We’re like a wounded animal limping around in the wilderness, and the hyenas are gathering.

@chris_paget: This is all too familiar to Rams fans. Both clubs need new “credible” owners and fast or likely to suffer the same fate as us with administration, wouldn’t be surprised to see Ashley put his hat in the ring for Reading also.

@harryy6666: I’d take administration ahead of Storey based on everything I’ve read. We’re probably going down anyway. Ashley on the other hand might be OK for us even if mixed to negative reviews from Newcastle.

@chris_paget: Ashley was in for us but due to level of debt involved inflating the asking price wouldn’t pay it,offer reputedly would’ve meant another -12 points. Don’t know what Reading situation is, Ashley would be ok, say he’s not ambitious but he won’t want the club in league 1 forever