It has been reported that Hereford United FC are set to face another winding up petition in the Royal Court of Justice, Companies Court in London on Monday 7 April 2014. The winding up petition was issued on Wednesday last week by HM Revenue and Customs (“HMRC”) in relation to unpaid taxes for the amount of £78,000.
Previous Winding Up Petitions & Financial Difficulties
For the year ending April 2013, the club is reported to have had losses of £499,000. Since then the club have commenced a sequence of cost cutting procedures, which included the sale of high profile midfielders.
On 3 February 2014, we reported that the club was served a winding up petition by HMRC. The hearing of the petition took place on Monday 27 January 2014 at the Companies Court in London. The club managed to secure funds which were underwritten by its board of directors and as a result, the petition was dismissed at the hearing on 27 January 2o14.
However, it soon became apparent that the club were not out of the woods and their financial troubles were not resolved. The club’s chairman David Keyte has warned that the cash-strapped club ‘needs to raise £300,000 to see out the current season.’
HMRC Winding Up Petitions
Earlier this month, the club’s fans were told at a meeting that the club must find £78,000 within two weeks to satisfy HMRC’s outstanding tax bill. On 26 March 2014 HMRC issued another winding up petition against the club which is due to be heard on 7 April 2014 at the Royal Court of Justice, Companies Court.
If the club fails to pay the outstanding tax bill (or agree an out of court settlement) the likely possibility is that HMRC’s winding up petition will be successful, in which case the club face a winding up order.