Worcester Warriors face liquidation
HMRC have submitted a winding-up petition due to tax owed
Last updated 18th Aug 2022
Worcester Warriors say their directors are in "continuing dialogue" with HM Revenue and Customs (HMRC) after being issued with a winding-up petition.
It's due to an outstanding tax amount owed by the Gallagher Premiership club to HMRC.
What is a winding up petition?
Gov.uk says a winding up petition can be applied for if a company cannot pay its debts. It's also known as compulsory liquidation.
To wind up a company, they need to
- Owe £750 or more
- Be unable to pay back the money
If the petition is successful:
- Company assets are sold
- Any legal disputes are settled
- The company collects money it’s owed
- Funds are paid to creditors
"Worcester, along with many other businesses and most sports clubs, have found the past two years extremely challenging owing to the Covid-19 pandemic and the rise in the cost of living," Worcester said in a statement.
"We retained our staff but lost income during the various lockdowns, during which the overwhelming majority of matches were played behind closed doors.
"We returned to normal operations 12 months ago carrying a tax liability to HMRC. From the outset, we have worked closely and openly with HMRC on a plan to clear these liabilities and a Time to Pay (TTP) arrangement has been in place.
"The club owners and board are fully committed to preserving top-flight professional rugby in Worcester and have been working on solutions to secure the financial future of Worcester Warriors and to pay outstanding tax owed to HMRC.
"A solution, which would secure the long-term future of the club, has been approved.
"Unfortunately, there have been unavoidable delays beyond the club's control to the final tasks required to complete the funding.
"Having kept HMRC fully apprised of the situation, we are disappointed that they have taken the decision to issue a winding-up petition.
"The club's directors are in continuing dialogue with HMRC in an attempt to find a speedy and satisfactory resolution.
"We have also been in communication with the Department for Digital, Culture, Media and Sport, Sport England, Premiership Rugby and the RFU (Rugby Football Union) regarding this matter."
In a general statement, an HMRC spokesperson said: "We take a supportive approach to dealing with customers who have tax debts, working with them to find the best possible solution based on their financial circumstances."
The Warriors' opening Gallagher Premiership game of the season is against London Irish on September 10.