Carlisle United to seek new investment after long-running takeover deal collapses
- Published
Carlisle United have struggled in League Two this season and are 22nd in the table, a point off the relegation places
Carlisle United say they will seek new investment after a long-running takeover of the club collapsed.
A takeover involving Edinburgh Woollen Mill was proposed in 2019 but was held up when the deal was put to the English Football League for approval that year.
Carlisle United Official Supporters Club (CUOSC) later withdrew their support for the deal in May 2021.
With the club unable to find a compromise between all parties, they announced on Friday the move was off.
The club currently owes Edinburgh Woollen Mill (EWM) £2.4m according to CUOSC,, external with the company loaning the club the money in 2019 to give them a "sound financial footing" ahead of a possible takeover.
In a statement,, external League Two Carlisle said that by mid 2019, United's existing shareholders proposed a transfer of their shares, with CUOSC also agreeing to dilute their voting rights on the condition a deal was completed.
The EFL were informed of a proposed change of control at the club in the summer of 2019 but, by December of that year, the deal looked to be in doubt with CUOSC saying that "the assurances required by the EFL were not acceptable to Edinburgh Woollen Mill".
Edinburgh Woollen Mill later went into administration after the Covid-19 pandemic hit, before it was saved in January 2021 when the knitwear chain was sold and brought into a new company named Purepay Retail Ltd.
A revised deal was worked on, but was delayed due to the impact of the pandemic as well as EWM entering administration.
The Supporters Club say they later were asked to dilute their shareholding of the club but without a change in control, which they did not agree to and eventually led to them withdrawing their support for the deal.
The club have also asked to enter discussions with Purepay Retail over the repayment of the £2.4m loan.
Carlisle have struggled on the pitch this season and are battling to remain in the EFL in 22nd place in League Two.