An update emerges as the Shrimpers Trust issues a statement regarding the future of Southend United with it currently in doubt.
The National League outfit ave reportedly got just 42 days left to pay off their HMRC bill after seeing the winding up petition adjourned again, confirmed by Echo News on Wednesday morning.
However, the Trust urged for answers from Ron Martin to over what happens next with there being no updates or explanation going forward.
Southend United given more time to clear tax debt https://t.co/TpgZCmcPMu
— Chris Phillips (@CJPhillips1982) January 18, 2023
A statement said: “The Shrimpers Trust calls upon Ron Martin to urgently confirm when bridging finance is now to be expected, and how the club will be able to function until work begins on the new stadium at Fossetts Farm.
“We expect all salaries to be paid on time.
“We expect outstanding monies to suppliers to be resolved.
“We expect loans to be returned and the club’s accounts to be filed.
“If these expectations cannot be met, then bridging finance is not the solution.
“We are disappointed that the can has been kicked down the road,” added the statement.
“The dark clouds continue to gather over Roots Hall.
“We need genuine hope that on-field delivery will be matched off it by the owner.
“On 1st October 2022, when a Time To Pay agreement was cancelled by HMRC, Club owner Ron Martin declared it would be “weeks not months” before bridging finance was secured to discharge the debt in full,” said the Trust.
“On 31st December 2022, Chief Executive Tom Lawrence confirmed that bridging finance was the short-term solution to the club’s current financial issues, and that it would be used to pay off the HMRC debt, resulting in the winding-up petition being dismissed.
‘The Shrimpers Trust calls upon Ron Martin to urgently confirm when bridging finance is now to be expected, and how the club will be able to function until work begins on the new stadium at Fossetts Farm’https://t.co/kN6WGeIijp
— Chris Phillips (@CJPhillips1982) January 18, 2023
Southend United were given more time to pay money owed HM Revenue & Customs, following a winding up petition hearing postponed to the 1st of March.
The petition was submitted to the National League club in October, however, the High Court decided to remand the matter until the 18th of January after a hearing in November.
Although the court haven’t disclose all details, a lawyer representing HMRC said that the debt was “large”.
The court was informed that the problem was Covid-related, and that Southend’s lawyer stated that there was a real prospect of money coming in.
Southend chief executive Tom Lawrence stated earlier this month that bridging financing would be used for HMRC. This should result in the petition being dismissed
Southend, who have been at Roots Hall for 68 years, plot a move to Fossetts Farm, where they can have a better location, necessary to solve their financial problems. The club faces a funding gap of approximately £2m per year.
Judge Mark Mullen adjourned the hearing and said that he believed the club was valuable to the community, but had to pay the outstanding amount.
In recent years, the Shrimpers were subject to a number of winding up petitions. The first was which was dismissed in January 2020.
Fans reacted as an update emerges regarding the future of Southend United while the Shrimpers Trust issues a statement…
@antsk: It’s not COVID-related. It’s poor management/ownership related…
@shrimperjon: Real prospect is a concern. Hardly definite. Just have to hope 🙏
@Davemallam: There’s a real prospect of me winning the euro millions as I bought a ticket, but it’s still not going to happen!
@TerenceCraven: TBF, we have to feel slightly hard done by as one of the only clubs affected by games being suspended during the pandemic.
@SmiffySUFC: Ahh yes, the old covid card. If it was a one-off you could almost accept it. But of course we’ve lost count at the amount of times we’ve been in court over the last decade. Bottom line is the funding isn’t there on time to prop up the club adequately. Tom has an impossible job.
@Nickhardysufc: ‘covid related’ he’s already admitted falling out the EFL costs the costs the club 1.5m per year 🤡
@tommyharris57: So the nightmare continues! Ok so at least we’ve got more time, but the problem is still there. Where’s the finance that was going to take just weeks 2 months ago? How are we going to pay wages & other bills if no new finance has been received yet? Total mess &all of RM’s doing!!
@mondazeo88: Basically, RM has until Mar 01 to clear what RM owes or we, as a club, are up the creak without a paddle? Cheers, RM. Cheers for the square root of sweet f/a!
@SonnyGilbert12: Clearly hasn’t got the money with all these adjournments. 1st march is the day we probably go bust unless we sell our best players to fund the tax bill
@BluesLeigh: Despite promises by RM all wages would be paid before Christmas. Staff are STILL waiting for Decembers pay.😡
@TidburyG: Can’t see any positive outcome.
@matthewdriver07: We make so many trips to court that they should now be added to the fixture list.
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