Southend United pay £1.4m HMRC bill before winding-up petition court date
- Published
Players and staff at Southend United have been paid late - or not at all - over recent months
Southend United say they have paid the £1.4m tax bill owed to HM Revenue & Customs in time for the club's winding-up hearing on Wednesday.
The National League side could feasibly have been closed down by the High Court had the money not been paid.
In a statement,, external Southend added that "funds as working capital" had also been injected to further help the club.
Chairman Ron Martin had been understood to be seeking bridging funding of about £5m to cover the club's debt.
"The club's objective is to regain its future as a club within the Football League at the earliest opportunity," the club statement added.
Central to Southend's future is the chairman's long-standing ambition to develop Roots Hall - a project expected to yield a multimillion-pound return.
The current ground would be turned into 502 new homes for rent once the football club has relocated to a new stadium at Fossetts Farm.
As recently as the start of February, various supporters' groups had begun "exploratory work" to establish a phoenix club, with worries that Southend could go out of business.
But, in an email to BBC Essex, club owner Martin said he would "not let the club be wound-up".
The Shrimpers are sixth in the fifth tier of English football.
'Funding gives Southend breathing space'
BBC Essex sports editor Glenn Speller
Considering Southend United's recent close encounters with HMRC, the fact the outstanding monies have been paid at the eleventh hour should not come as much of a surprise, but it has not stopped the Shrimpers fans from sweating.
The chairman, Ron Martin, has been waiting on £5m bridging finance which, given the high interest rates would make more sense to take at the end of the month, but that has led to an immense amount of angst, anger and worry.
The players have now received their wages for January, with February's due on Wednesday, but office staff are still working unpaid, with some having not received anything since November.
Fans were hoping a transfer embargo could also be lifted to enable manager Kevin Maher to strengthen his play-off chasing squad which has been hit by injuries in recent weeks, but that restriction remains in place and many supporters are still calling for owner Martin to sell the club.
This funding gives the club some breathing space but without swift progress being made on a move to a new stadium and a return to the EFL, it will surely only serve as a sticking plaster.