Southend United: Prospective buyers fear for administration after two bids knocked back

Southend United were formed in 1906

Investors looking to buy financially troubled Southend say they fear the club could go into administration after having two takeover bids rejected.

Southend have faced numerous winding-up petitions over unpaid tax and are next due in court on 4 October.

Justin Rees, on behalf of the prospective buyers, said they understand that owner Ron Martin will ensure the club "avoids liquidation".

"However, the threat of administration remains," Rees said in a statement.

"Administration impacts the club significantly, on and off the pitch, as well as its numerous creditors who have supported the club financially for many years.

"As such, it has been our strong preference to avoid administration. However, this is of course not within our control."

When the case against Southend was last adjourned, in August, the judge said Southend would be would up if that deadline to settle its £275,000 debt with HM Revenue & Customs was missed.

Southend, who have total debts of £2.5m, have been docked 10 points by the National League because of their ongoing financial issues and are second from bottom of England's fifth tier.

Australian businessman Rees said the consortium he is representing have been working on a deal for the past 10 weeks and have had two bids in the past seven days knocked back by Martin, who first put Southend up for sale in March.

Martin has long maintained that the solution to their financial problems is a move to a new stadium at Fossetts Farm - but work has yet to begin at the site.

As a result, the prospective buyers have outlined that they want to return ownership of Southend's Roots Hall ground and its training base to the club as part of any takeover deal.

"We remain open to continued negotiations with Mr Martin. However, it now seems unlikely that any deal can be agreed prior to the 4th of October court appearance date," Rees said.

"Any deal is particularly complicated due to the state of the club's finances, the condition of Roots Hall, the non-viability of a new stadium at Fossetts Farm, as well as the ownership of the training ground and Roots Hall properties remaining outside of the club.

"We do not intend to make the full details of our bid public at this time except to note that it is centred around retaining and upgrading Roots Hall as the club's stadium, while taking ownership of that property plus the training ground back into the club.

"We believe this would release Mr Martin to develop Fossetts Farm without a new stadium requirement, and as a result, are looking to him to contribute funds back towards the redevelopment of Roots Hall."