Worcester Warriors: Period of administration extended, Begbies Traynor confirms
- Published
Worcester Warriors' Sixways home will be occupied by two sides in the 2023-24 season - Warriors Women in Premiership Women's Rugby and non-league football side Worcester Raiders
Worcester Warriors will remain in administration as the sale of the club to new owners Atlas drags on.
Atlas, co-owned by Jim O'Toole and James Sandford, paid £2.05m for the former Premiership club, but must come up with another £1.18m by 9 October.
The sale was completed in May but they have still to complete the purchase of Sixways stadium and surrounding land.
Administrators Begbies Traynor said in a letter to creditors that the "period of administration has been extended".
They must remain "in office" to receive the further payment and "subsequently make a distribution to the preferential creditor" who has given consent for the administration period to continue.
The letter confirmed that investigations into Worcester's affairs was continuing and that work was needed to complete accounts for the first year of administration, which began in September 2022, to ensure that corporation tax "does not rank as an expense" of it.
Begbies Traynor sold the club's P-share back to the Premiership for £9.8m.
The bulk of that money was used to pay off part of a large loan owed to the Department of Culture Media and Sport, following the Covid pandemic.
Atlas have a licence to use Sixways as their trading premises - and it will be occupied by Premiership Women's Rugby side Worcester Warriors Women and non-league football club Worcester Raiders in 2023-24.