Southend United: National League impose embargo on club over HMRC debt

Southend dropped out of the EFL for the first time in 101 years when they were relegated in May

Southend United have been placed under a National League embargo because of debts caused by the Covid-19 pandemic.

A club statement said they were working to finalise the terms of a time to pay agreement with HM Revenue and Customs.

The Shrimpers, however, do not expect the embargo to "prevent signings" when new players are identified.

Southend lost their place in the English Football League last season and are 19th in the table after Tuesday's draw with Maidenhead.

"Like many other businesses that had reduced income during the pandemic, HMRC has agreed to allow us some time to repay historic debt," the statement continued.

"Unlike many other clubs, we did not borrow money from the Premier League and do not have any bank borrowings.

"With a reasonable approach from both parties we hope to conclude our discussions with HMRC shortly."

Southend made their most recent signings on 28 October, when attacking midfielder Zak Brunt and Poland Under-20 centre-back Kacper Lopata were brought in on loan from Sheffield United until January.

The National League said they would not comment on individual clubs.